Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Margin
n. 1. A boundary or edge. 2. A measure or degree of difference. 3. PROFIT MARGIN. 4. The difference between a loan's face value and the market value of the collateral that secures the loan. 5. Cash or collateral required to be paid to a securities broker by an investor to protect the broker against losses from securities bought on credit. 6. The amount of an investor's equity in securities bought on credit through the broker. - margin, vb. - marginal, margined, adj.
Remargining
n. Securities. The act or process of depositing additional cash or collateral with a broker when the equity in a margin account falls to an insufficient level. - remargin, vb. See margin account under ACCOUNT.
buying on margin
See MARGIN TRANSACTION.
contribution margin
The difference between a product's selling price and its cost of production. ( The contribution margin indicates the amount of funds available for profit and payment of fixed costs.
good-faith margin
The amount of margin that a creditor exercising good judgment would customarily require for a specified security position. ( This amount is established without regard to the customer's other assets or securities positions held with respect to unrelated transactions. marginable security. See SECURITY. margin account. See ACCOUNT. marginal cost. See COST (1).
initial margin requirement
The minimum percentage of the purchase price that a buyer must deposit with a broker. ( The Federal Reserve Board establishes minimum margin requirements to prevent excessive speculation and price volatility.
maintenance margin requirement
The minimum equity that a buyer must keep in a margin account, expressed as a percentage of the account value.
margin account
A brokerage account that allows an investor to buy or sell securities on credit, with the securities usu. serving as collateral for the broker's loan.
margin call
A securities broker's demand that a customer put up money or stock as collateral when the broker finances a purchase of securities. ( A margin call usu. occurs when the market prices of the securities are falling. - Also termed maintenance call.3. See call option under OPTION. 4. A demand for the presentation of a security (esp. a bond) for redemption before the maturity date. 5. A landmark designating a property boundary. ( The landmarks are chosen by the surveyor and recorded in his field notes or in the accompanying deed. See METES AND BOUNDS.
margin deficiency. Securities
The extent to which the amount of the required margin exceeds the equity in a margin account. margined security. See SECURITY.
margin list
A Federal Reserve Board list limiting the loan value of a particular bank's stock to a certain percentage (e.g., 50%) of its market value. ( When a bank is not on the list, no limit is placed on the loan value of stock used as collateral.
margin requirement
Securities. The percentage of the purchase price that a buyer must deposit with a broker to buy a security on margin. ( This percentage of the purchase price is set and adjusted by the Federal Reserve Board. "Margin requirements are the statutory and administrative restrictions placed upon the percentage of the valueof securities that may be borrowed for the purpose of the purchase of such securities, the term margin' referring to the percentage of the value that must be paid in cash by the purchaser. Such requirements have been implemented for the purposes of preventing the excessive use of credit for the purchase or carrying of securities, and of reducing the aggregate amount of the national credit resources, which are directed by speculation into the stock market, and of achieving a more balanced use of such resources." 69 Am. Jur. 2d Securities Regulation -Federal ยง 481 (1993).
margin stock
See marginable security under SECURITY.
margin transaction
A securities or commodities transaction made through a broker on a margin account. - Also termed buying on margin. See MARGIN (5).
marginable security
A security that can be bought on margin. - Also termed margin stock. See MARGIN.
marginal cost
The additional cost incurred in producing one more unit of output.
marginal note
A brief notation, in the nature of a subheading, placed in the margin of a printed statute for ease of reference. ( Many jurisdictions hold that notes of this kind cannot be used as the basis for an argument about the interpretation of a statute. - Also termed sidenote. marginal revenue. See REVENUE. marginal tax rate. See TAX RATE. margin call. See CALL.
marginal revenue
The amount of revenue earned from the sale of one additional unit.
marginal tax rate
In a progressive-tax scheme, the rate applicable to the last dollar of income earned by the taxpayer. a This concept is useful in calculating the tax effect of receiving additional income or claiming additional deductions. See TAX BRACKET.
margined security
A security that is bought on margin and that serves as collateral in a margin account. See MARGIN.
profit margin
1 The difference between the cost of something and the price for which it is sold. 2. The ratio, expressed as a percentage, between this difference and the selling price. For example, a widget costing a retailer $10 and selling for $15 has a profit margin of 33% ($5 difference divided by $15 selling price). -Often shortened to margin.