Stock approved by the Federal Reserve and an investor's broker as being suitable for providing collateral for margin debt. Depositing marginable stocks (or any other marginable securities) in a margin account is an effective way for an investor to reduce financing charges. However, the criteria to ensure that securities are suitable as collateral for margin debt can be quite strict. The Federal Reserve has a minimum set of standards for marginable stock, but a broker can choose to set stricter standards.
Related information about marginable stock:
- What is marginable stock? definition and meaning
Definition of marginable stock: Stock approved by the Federal Reserve and an investor's broker as being suitable for providing collateral for margin debt.
- About Margin
For example, for a new position, if you purchase $10,000 of marginable stock, you can purchase an additional $10,000 of marginable stock. For instance, if you ...
- How Much Does a Stock Price Have to Be to Be Marginable? | eHow ...
Though the brokerage firm may set their own minimum stock price for margin accounts, a typical minimum marginable stock price is $5 per share or higher.
- Margin Handbook - TD Ameritrade
1,000 shares of a marginable stock at $20 per share. If the stock ... shares of marginable stock with the additional funds you borrow, you could increase the size ...
- shorting securities - Why can't I short a stock that sells for less than ...
... has to have the shares to lend, and normally those shares come from people's margin, which is impossible on a non-marginable stock.
- What is Margin? - Charles Schwab
appropriate for any type of margin call). ▫ Wire funds. ▫ Use an active MoneyLink profile to move funds to. Schwab. ▫ Deposit marginable stock. ▫ Journal cash or ...
- Marginable Stock Definition - What is a Marginable Stock - Margin ...
What does it mean to buy stock on margin, Stocks requiring higher margin rates, What is a margin account for stocks.
- What is my buying power? | TradeKing
She can buy marginable stock worth $20,000, options worth $10,000, or she can simply withdraw the $10,000 she just deposited. Because she has not ...