call loan

call loan definition - business

call loan

A loan that may be terminated at any time by either party. For investors, a call loan means bank loans to stockbrokers for the purpose of carrying customer margin borrowing, using securities as collateral. The rate of interest, similar to that on other high-quality short-term loans, varies over time. Also called broker call loan. See also broker's loan.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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