margin

margin definition - business

margin

  1. The amount of funds that must be deposited when purchasing securities. See also initial margin requirement.
  2. The equity in an investor's account. See also maintenance margin requirement.
  3. The difference between the payment received for a good or service and the cost of producing it. A product that is sold for $4.00 and costs $2.75 to produce has a margin of $1.25.
  4. Points added to an index in determining the rate of interest on an adjustable-rate mortgage 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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