Active Box

AAA

DEFINITION of 'Active Box'

A physical location in a brokerage where securities are kept. These securities are usually held as collateral for customers' margin positions. The collateral is used to secure broker loans, which is money lent to brokers and investors by banks. This money is used to finance the brokers' inventory of stock and to finance the underwriting of corporate and municipal securities.

INVESTOPEDIA EXPLAINS 'Active Box'

Customer margin accounts are financed with broker loans. Margin accounts enable investors to buy large quantities of securities with broker loans. The stock and bond certificates are kept in the active box until the margin account loan is paid. A bond certificate is a legal document giving the bond owner the right to collect the debt listed on the document.

Active box is also referred to as open box.

RELATED TERMS
  1. Cage

    A term used to describe the department of a brokerage firm that ...
  2. Bearer Form

    A security not registered in the issuing corporation's books ...
  3. Margin Account

    A brokerage account in which the broker lends the customer cash ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Registered Bond

    A bond whose owner is registered with the bond's issuer. The ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
Related Articles
  1. Personal Finance

    Bearer Bonds: From Popular To Prohibited

  2. Brokers

    Uncovering The Securities Firm

  3. Retirement

    The Best Way To Borrow

  4. Options & Futures

    Brokers and Online Trading

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center