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.
Archives
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 Capitalization
Latest stock price multiplied by number of shares outstanding (shares issued).
IPO Financing
The dollar value of initial public offering (IPO) securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. It is the stated prospectus price multiplied by “the number of securities issued under the IPO plus the over allotment”.
Issue
Any of a company’s securities or the act of distributing the securities. Issued shares refer to the portion of a company’s shares that have been issued for sale. A company does not have to issue the total number of its authorized shares.
Issue Status
The trading status of a class or series of an issuer’s listed securities, such that a class or series of listed securities of an issuer may be halted, suspended, or delisted from trading.
Issued and Outstanding Securities
Commonly refers to the situation where the number of issued securities equals the number of outstanding securities. However, under certain corporate statutes in Canada, an issuer may have issued securities and then repurchased those securities without cancelling them. In that case, the securities are issued but are not outstanding. As a result, the number of issued securities does not equal the number of outstanding securities.
Issuer Status
The trading status of a listed or formerly listed issuer. Issuer status types include: delisted, listed, suspended, and trading.