Unformatted text preview: s laws. An agency set up the financial industry to regulate financial firms and markets These of computers to automatically decide on the price, quantity and timing of an order. Trading with the intention to buy and then sell the shares within the same day. Automated trading where shares are hold for only a very short periods of time, sometimes for less than a minute An account that allows the investor to borrow from the brokerage to purchase securities. This is sometimes called “buying on margin”. The investor’s equity in a margin transaction. The amount NOT borrowed. The initial equity an investor has in a margin transaction. The minimum margin (expressed as a percentage) Margin Call Short Sale Short Interest Ratio that the investor must have at all times during a margin transaction. A demand from the broker for additional cash or securities as a result of the actual margin declining below the maintenance margin. The broker can also choose to sell securities from the investor’s account. The sale of a stock borrowed by an investor in order to take advantage of an expected decline in the price of the stock. The ratio of total shares sold short to average daily trading volume....
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- Spring '14
- brokerage house, Margin Initial Margin