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LSDefine

Simple English definitions for legal terms

margin deficiency

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A quick definition of margin deficiency:

Margin deficiency refers to a situation in which the amount of money required to be held in a margin account is greater than the amount of money actually available in the account. This means that the investor does not have enough money to cover their losses, and may be required to deposit more funds or sell securities to meet the margin call.

A more thorough explanation:

Definition: Margin deficiency refers to the situation where the required margin for a security exceeds the equity in a margin account.

Example: Let's say you have a margin account with $10,000 equity and you want to buy $20,000 worth of stock. The broker requires a 50% margin, which means you need to have $10,000 in cash or securities in your account. However, if the stock price drops and the value of your stock falls to $15,000, your equity in the account will be $5,000. This means you have a margin deficiency of $5,000, which is the difference between the required margin of $10,000 and your equity of $5,000.

Another example could be if you have a margin account with $5,000 equity and you want to buy $10,000 worth of stock. The broker requires a 50% margin, which means you need to have $5,000 in cash or securities in your account. However, if the stock price drops and the value of your stock falls to $7,500, your equity in the account will be $2,500. This means you have a margin deficiency of $2,500, which is the difference between the required margin of $5,000 and your equity of $2,500.

These examples illustrate how margin deficiency can occur when the value of the securities in a margin account falls below the required margin. This can lead to a margin call, where the broker requires the investor to deposit more cash or securities to cover the margin deficiency.

margin call | margined security

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ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
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