FINRA BrokerCheck®
What is FINRA BrokerCheck®? FINRA BrokerCheck is a free tool that helps individuals conduct research on the professional experience of brokers and brokerages, as well as investment firms and advisors. FINRA, which stands for Financial Industry Regulatory Authority, is a private American company founded in 2007. FINRA focuses on upholding the integrity and governance of...
Eurodollar
What is a Eurodollar? A Eurodollar refers to funds that are denominated in U.S. dollars and held in foreign banks or overseas branches of American banks. The funds can be in the form of cash deposits or term deposits. These deposits were originally held in Europe, hence the name “Eurodollar” (i.e., U.S. dollars held in...
Face Value
What is Face Value? The value mentioned on an instrument like a coin, stamp, or bill is called the face value of that instrument. For example, a $100 bill comes with a face value of $100. In calculus, the face value of 3 in 546738 is 3 itself. Significance of Face Value In the era...
Margin Debt
What is Margin Debt? Margin debt represents the amount that an investor owes a broker in their margin account. When a broker approves a margin account for an investor, the margin account is granted a line of credit that can be used to purchase securities. The brokerage charges an interest rate on the margin debt,...
Margin of Safety
What is the Margin of Safety? The margin of safety is an investment principle where the investor buys stocks when the market price is below their actual value. It is evaluated as the change between the price of a financial instrument and its basic value. The margin of safety acts as a built-in cushion that allows...
