Margin requirement
Margin requirement is the margin is the percentage of a stock's price that an investor has borrowed in order to purchase the stock. The Securities and Exchange Commission sets margin requirements, which is the maximum percentage of debt that can be used to purchase a stock.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Margin requirement. The margin is the percentage of a stock's price that an investor has borrowed in order to purchase the stock. The Securities and Exchange Commission sets margin requirements, which is the maximum percentage of debt that can be used to purchase a stock.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
