Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
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 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).