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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Margin

Definition:

See Margin Debt. You are borrowing from your broker for a portion of the investment. If Schwab is offering up to 50% margin and you have opened an account with them for $100,000, you can buy up to $200,000 worth of securities. The margin is the amount you have to put up; the broker lends you the rest. In this case, your $100,000 would represent 50% of the purchase price of $200,000 in stock.

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