“Allows investors to buy securities by borrowing money from a broker. The margin is the difference between the market value of a stock and the loan a broker makes. Related: Security deposit (initial). In the context of hedging and futures contracts, the cash collateral deposited with a trade...
They must keep a close eye on their checkbook to maintain a positive cash flow, or to anticipate a possible negative cash balance by sourcing (or raising) money from other sources. Ahead, learn more about the different types of cash flow. What is cash flow? Cash flow is a record of ...
Cash neutral is a type of strategy that involves creating a set of buying and selling of financial instruments into a combination...
Definition of Gross Margin Some use the term gross margin to mean the same as gross profit, which is: net sales minus the cost of goods sold. Others use the term gross margin to indicate the gross profit as a percentage of net sales. The cost of goods sold will consist of both fixed...
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An initial margin is the percentage of a stock purchase price that an investor must pay in his or her own money to invest...
The second cash flow ratio is the cash flow margin. To calculate your company's cash flow margin, divide your cash flow from operations by your total annual revenues. This ratio measures the quality of your company's earnings over the past year. If you have a high ratio, your customers ...
What is a Margin Call? The loan collateral or the cash and securities in a brokerage account fluctuate constantly. If the brokerage has a maintenance level, a minimum level of cash and securities must be maintained in an account. This is to comply with terms of the margin loan. Now, if...
Net profit margin is determined by dividing a company's net income by its revenue and multiplying the result by 100. The net profit margin formula is described in greater detail later in this story, along with hypothetical and real examples. ...
Before we do anything else, let's do a refresher on profit margins. Theprofit marginis among the most common profitability ratios that show how businesses make money. Put simply, the profit margin represents the total percentage of sales that result in a profit. Keep in mind, that you have...