Margin Account
/ˈmɑːrdʒɪn əˌkaʊnt/
Definitions
- (n.) A brokerage account allowing investors to borrow funds from a broker to purchase securities, using the assets in the account as collateral.
The investor opened a margin account to buy more shares than their cash balance permitted.
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Commentary
Margin accounts involve risks related to borrowing and collateral; legal agreements should clearly specify margin calls and default consequences.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.