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Stock approved by the Federal Reserve and an investor's broker as being suitable for providing collateral for margin debt. | ||
Additional Comments:
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.
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Related Terms: | ||
Marginable Security An investment that can be used as collateral in a margin account. ... Margin Requirements The amount of cash or marginable securities (for example, blue chip stocks) that an account holder ... Federal Reserve The U.S. central bank that is responsible for monetary policy. ... |
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