HopefullyInLawSchool
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LSDefine
Simple English definitions for legal terms
Margin
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A quick definition of Margin:
Margin: Margin is the difference between how much something costs to make or buy and how much it is sold for. For example, if a pencil costs 50 cents to make and is sold for a dollar, the margin is 50%. Margin can also mean a payment made to a stockbroker to buy stocks or other financial assets. If someone trades stocks frequently, they may have a margin account. In bankruptcy, margin payment means any payment made to buy securities or reduce a deficiency in a margin account.
A more thorough explanation:
Margin, also known as profit margin, is the difference between the selling price of a product or service and the cost of producing it. In simpler terms, it is the amount of money a business makes after subtracting the cost of producing the product or service.
If a pencil costs 50 cents to produce and is sold for a dollar, the margin is 50%. This means that the business makes a profit of 50 cents for every dollar sold.
Margin can also refer to a payment made by a customer to a stockbroker to secure