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debit balance

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Financial Dictionary

debit balance

The amount owed in a brokerage margin account. A debit balance occurs when an investor purchases securities on margin or borrows money from the account by using securities as collateral. Brokerage firms typically charge an interest rate on the borrowed funds that varies with the size of the debit balance. Compare credit balance. See also call loan.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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