Word: margined
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Dates: during 1930-1939
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This year promises to be Churchill's best by a small margin. Eight ships carrying freight alone, seven more also carrying passengers are scheduled to sail before the freeze-over about Sept. 30. Costing $70 per ticket, the voyage takes from 14 to 20 days, offers a view of a part of the world where few besides explorers have been. According to the booking agent, last week's six tourists-four from Vancouver, two from Regina-were merely "curiosity seekers...
...barley from 36? to 65? rye from 50? to 76?. On the Chicago Board of Trade, grains frequently jumped the full day's limit long before the close of trading, and speculation became so rampant that conservative commission houses forehandedly raised their margin requirements...
Bitter were complaints from brokers last spring when the Federal Reserve upped margin requirements from 45% to 55%. They protested that the requirement was too steep, that it would throttle investment buying along with speculation. Politely the Reserve Board invited the New York Stock Exchange to survey effects of the new ruling. Last week the Exchange completed its report, sent it to Washington without comment. On the basis of three samplings, a month apart, it appeared that about one-third of all margin accounts were "restricted" (i. e., frozen). These restricted accounts also represented one-third of all securities held...
Under the present margin ruling, an account becomes restricted when the customer's equity amounts to less than 55% of the market value of all securities held. Restriction does not mean that the customer has to put up more money. Margin calls are only caused by the Stock Exchange's private requirements, which are lower than the Government's. But restriction does mean that a customer may not withdraw either cash or securities until his equity is again built up to 55%. He may substitute one stock for another on a dollar-for-dollar basis...
Just above the restricted class are so-called "borderline" accounts, in which margin is 55% to 60%. Their trading rights are not restricted, but excess margin is so small that another purchase of any size would push them below the 55% mark. Reported in this danger zone were 11% of all accounts, 12% of all margined securities...