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LSDefine

Simple English definitions for legal terms

margin deficiency

Read a random definition: Materialman's Lien

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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texaslawhopefully
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@texaslawhopefully: best prices and only fast food that doesn't make me sick
matt gaetz ethics report released
paid for sex with a junior in high school
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BulbasaurNoLikeCardio
9:51
I only read headlines and skimmed a random article of it since I am the only one at work this week. Seems like he is Republican Hunter Biden but not at the paying rent with poop paintings stage
ImpartialLion
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BulbasaurNoLikeCardio
9:58
I would say it is a toss up, for how much LSAC charges us for everything they are extremely efficient in processing and sending stuff out BUT with a 30% uptake in applicants and the holidays it may be significantly slower unless it is ran through and processed by a computer program. Even if it takes them longer to process it, not like there is anyone at a school to request and review it after LSAC does their thing
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