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Accounting > Margin Account (Stocks)

The following information is about Margin Account (Stocks).

Margin Account (Stocks) Defined

is a leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock andif the value of the stock drops sufficientlythe owner will be asked to either put in more cashor sell a portion of the stock. Margin rules are federally regulatedbut margin requirements and interest may vary among broker/dealers.

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