Search results
Results From The WOW.Com Content Network
This difference has to stay above a minimum margin requirement, the purpose of which is to protect the broker against a fall in the value of the securities to the point that the investor can no longer cover the loan. Margin lending became popular in the late 1800s as a means to finance railroads. [1] In the 1920s, margin requirements were loose.
cost was 75.00 and if sold for 75.00 both the profit margin and the discount is 25%. These examples show the difference between adding a percentage of a number to a number and asking of what number is this number X% of. If the markup has to include more than just profit, such as overhead, it can be included as such: cost × 1.25 = sale price; or
Margin rates are a financial concept the average investor might not be informed about - and this lack of knowledge could be costly. As a general rule, new investors should stay away from ...
In finance, the term accretion refers to a positive change in value following a transaction; it is applied in several contexts.. When trading in bonds, accretion is the capital gain expected when a bond is bought at a discount to its par value, [1] given that, it is expected to mature at par.
Profit margin is calculated with selling price (or revenue) taken as base times 100. It is the percentage of selling price that is turned into profit, whereas "profit percentage" or "markup" is the percentage of cost price that one gets as profit on top of cost price.
Within economics, margin is a concept used to describe the current level of consumption or production of a good or service. [1] Margin also encompasses various concepts within economics, denoted as marginal concepts , which are used to explain the specific change in the quantity of goods and services produced and consumed.
A good operating margin is needed for a company to be able to pay for its fixed costs, such as interest on debt. A higher operating margin means that the company has less financial risk. Operating margin can be considered total revenue from product sales less all costs before adjustment for taxes, dividends to shareholders, and interest on debt.
A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products. Margin is a higher-risk method of using leverage to enhance ...