margin account

Definition of "margin account"
  1. An account held by a client at a brokerage firm that allows the client to purchase securities using the firm's credit
How to use "margin account" in a sentence
  1. After understanding the risks involved, the investor decided to open a margin account to increase her purchasing power.
  2. Because he had a margin account, he was able to purchase more shares of the technology company than his cash would have allowed.
  3. When the stock plummeted, those trading with margin accounts found themselves in serious debt to their brokerage firms.

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