Current Market Value - CMV

What does 'Current Market Value - CMV' mean

Current market value (CMV) is the resale valuation attached to a security held long in an investor's margin account. The current market value is usually taken as the closing price for listed securities or the bid price offered for over-the-counter (OTC) securities.

BREAKING DOWN 'Current Market Value - CMV'

In a margin account, an investor essentially engages in owning securities purchased for a total price greater than the amount of cash he/she has in his/her account; the investor borrows the excess cash needed from his/her brokerage to fund the remainder of the purchase.

Due to this leveraged purchase situation, the brokerage account values the investor's assets periodically, and if the total account value falls below the required margin amount, the brokerage will require the investor to top up the account with cash or to liquidate some or all of his or her securities into cash. The current market value (CMV) is the standardized price that is taken periodically to track the change in value of the investor's assets.

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RELATED FAQS
  1. Use the following information about a customer’s margin account to answer the question.

    ABC stock – 200 shares. CMV $40/share PDQ stock – 100 shares. CMV $30/share LIB stock – 100 shares. CMV $50/ share Debit ... Read Answer >>
  2. How exactly does buying on margin work and why is it controversial?

    Learn how purchasing stock on margin works, and understand the risk associated with margin accounts that make the strategy ... Read Answer >>
  3. Use the following information about a customer’s margin account to answer the question ...

    The correct answer is b. Any time an investor uses SMA, he/she is borrowing money from the broker-dealer and increasing the ... Read Answer >>
  4. When looking at my online broker account, I see an account value, cash value and ...

    When looking at some online brokerage accounts, there are a few figures that may be confusing, including account value, cash ... Read Answer >>
  5. How much can I borrow with a margin account?

    Understand the basics of margin accounts and buying on margin, including what amount investors can typically borrow for purchases ... Read Answer >>
  6. What does it mean when the shares in my account have been liquidated?

    An account liquidation occurs when the holdings of an account are sold off by the firm in which the account was created. ... Read Answer >>
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