Margin

Margin allows investors to buy securities using borrowed money from a broker. The investor is charged interest for the loan. Margin requirements differ depending upon the type of transaction being made or the type of stock being purchased, e.g., selling puts, buying stock, credit spreads. Options are not generally marginable.

Margin Call

This is a demand for a client to deposit money or securities into a margin account. This can occur when a purchase is made in excess of the value of the margin account or when the value of an account decreases because the value of the securities held decreases regardless of whether a new purchase is made or not.

Market

The place where buyers and sellers meet to exchange goods and services. It also represents the actual or potential demand for a product or service.

Market Cap

This is a company’s market capitalization. To calculate the market cap, simply multiply the issued and outstanding shares by the current selling price.

Market Not Held Order

This is a market order where the investor gives the floor trader the discretion to execute the order when he feels it is best. If the floor trader feels that the market will decline, he may hold the order to try to get a better fill. This order may not get filled.

Last Sale Price

For a Market On Close (MOC)-eligible security, the last sale price equals the calculated closing price. If the MOC closing price acceptance parameters are exceeded, it equals the last board lot sale price of the security on the exchange in the regular trading session.For any other listed security, the last sale price equals the last board lot sale price of the security on the exchange, in the regular trading session.