Page:  of 52323
 

MARGIN REQUIREMENT

that part of a security's price that a buyer must pay for in cash. The balance of the price is met by the broker, who, in effect, is supplying a client with a loan. The smaller the margin, the greater the inducement to speculation. Low margin requirements were considered an important cause of the 1929 collapse of the American stock market. In 1934, the Securities Exchange Act gave the Federal Reserve Board the power to regulate margin requirements. The amount has been reset at various times, but in recent years, the Federal Reserve has instituted a 50% margin requirement with a $2,000 minimum.

____________________

The Columbia Encyclopedia, Sixth Edition Copyright© 2004, Columbia University Press. Licensed from Lernout & Hauspie Speech Products N.V. All rights reserved.

-30257-

Questia, a part of Gale, Cengage Learning. www.questia.com

Publication Information: Encyclopedia Article Title: Margin Requirement. Encyclopedia Title: The Columbia Encyclopedia, Sixth Edition. Publisher: Columbia University Press. Place of Publication: New York. Publication Year: 2004.
    
This feature allows you to create and manage separate folders for your different research projects. To view markups for a different project, make that project your current project.
This feature allows you to save a link to the publication you are reading or view all the publications you have put on your bookshelf.
This feature allows you to save a link to the page you are reading, which you can later return to from Projects.
This feature allows you to highlight words or phrases on the publication page you are reading.
This feature allows you to save a note you write on the publication page you are reading.
This feature allows you to create a citation to the page you are reading that you can paste into your paper. Highlight a passage to include that passage as a quotation.
This feature allows you to save a reference to a publication you are reading for your bibliography or generate a bibliography you can paste into your paper.
This feature allows you to print the page you are reading, including your notes or highlights (IE users must have "print background colors and image" setting selected.)
This feature allows you to look up words in encyclopedia.
  About Questia Tools
Close Window  
Questia's powerful research tools allow you to highlight, take notes, bookmark and even create instant citations and bibliographies. To use these features and save hours of work, you must create a Questia account.
Need a Questia account?
Sign up for a FREE trial now. Save time, stress and hassle, and get better grades with trusted, online research.

» Click here for our free trial

Already have a Questia account? Login now!
Error
Working...
Printing Preferences
Format for black and white printer: On Off
Print highlights: On Off
Print notes: On Off
Choose one of the options for printing:
Print this page (No Charge)
Print pages to