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Definition of 'Debit Balance'
In a margin account, money owed by the customer to the broker for funds advanced to purchase securities. The debit balance is the amount of funds the customer must put into his or her margin account, following the successful execution of a security purchase order, in order to properly settle the transaction.
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Investopedia explains 'Debit Balance'
When buying on margin, investors borrow funds from their brokerage and then combine those funds with their own to purchase a greater number of shares than they would have been able to purchase with their own funds. The debit amount recorded by the brokerage in an investor's account represents the cash cost of the transaction to the investor.
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Search results for 'Debit Balance'
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http://www.investopedia.com/ask/answers/09/series7-033109.asp
... Market value: $18,000, debit balance: $10,000 and SMA: $2,000. How much
of the SMA may be used to purchase additional securities? ...
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http://www.investopedia.com/exam-guide/series-7/customer-accounts/purchase-shares-margin.asp
... ($4,000) Debit Balance. $3,000 Credit Balance. ... The debit balance grew $2,000
to $4,000, as did the credit balance (increasing to $3,000). ...
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http://www.investopedia.com/exam-guide/series-7/customer-accounts/stock-price-change-margin.asp
... $5000 Long Market Value. ($2000) Debit Balance. $3000 Credit Balance. ... $5000 Long
Market Value. ($2000) Debit Balance. $3000 Credit Balance. ($2500) Reg T Requirement ...
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http://www.investopedia.com/exam-guide/series-7/customer-accounts/hypothecation-margin-value.asp
... and the trade is made, the account is said to have a long market value of $4,000,
comprised of $2,000 on loan from the broker, or debit balance, and $2,000 ...
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http://www.investopedia.com/ask/answers/08/series7-123008.asp
ABC stock 200 shares. CMV $40/share PDQ stock 100 shares. CMV $30/share LIB
stock 100 shares. CMV $50/ share Debit balance -- $6400If this. ...
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http://www.investopedia.com/ask/answers/09/series7-051909.asp
$150000 long market value$(100000) debit balance$50000 credit balance$5000 SMANo
short interest at present Reg T margin requirements: 50% initial. ...
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http://www.investopedia.com/exam-guide/series-7/customer-accounts/special-memorandum-account.asp
... $4,000 Long Market Value. ($1,000) Debit Balance. $3,000 Credit Balance. $500 SMA. ...
$4,000 Long Market Value. ($1,100) Debit Balance. $2,900 Credit Balance. ...
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http://www.investopedia.com/articles/03/061803.asp
... This would be marked as a debit in the financial account of the balance of payments
at that period of time, but when future returns are made, they would be ...
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http://www.investopedia.com/articles/03/070203.asp
... paying a return on a said investment would be noted as a debit in the ... on one side
and the capital and financial account on the other should balance each other ...
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http://www.investopedia.com/articles/pf/05/cards.asp
... From a financial perspective, debit and charge cards are even-structured, so ... Their
internal controls discourage or forbid carrying a balance, so the temptation ...
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