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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Initial Margin

Definition:

This is the amount that your broker will lend you to purchase securities. The minimum margin percentage is 50%, which is required by Regulation T, but brokers can impose higher margin. If a broker has a 60% margin policy, that means that you have to put up 60% of the purchase price; the broker will lend the balance.

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