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margin definition - legal

n

  1. The difference between the amount of a loan and the market value of the collateral securing it.
  2. Cash or other collateral given or paid to a stockbroker to secure him or her against losses incurred extending credit to an investor.
  3. The investorÂ’s equity in stocks purchased by a broker extending credit to the investor.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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