Dictionary


Margin call
A demand for a client to deposit money or eligible securities with the broker to bring a margin account up to the initial margin or minimum maintenance requirements. A margin call is sent when the margin account's equity falls below specific levels.
Margin Trading
Buying securities, in part, with borrowed money.
Mark-to-Market
The valuation process which provides an indication of reasonable prices for positions on a daily basis or some other proscribed time frame. In accounting parlance, it would mean valuing securities/loans at their market values.
Market Capitalization Rate
The market-consensus estimate of the appropriate discount rate for a firm`s cash flow.
Market Maker
One who maintains firm bid and offer prices in a given security by standing ready to buy or sell round lots at publicly quoted prices.