Series 28: Margin Securities

Margin Securities

A margin security is one that can be held in a margin account. Margin securities include equity and non-equity securities, mutual funds and unit investment trusts, convertible debt, and foreign margin stocks. Not all margin securities can be bought and sold on margin. The designation only means that they can be used as collateral in a margin account. The mutual fund shares, for example, have loan value that may be used to extend margin credit against subsequent stock purchases, but they cannot be bought or sold on margin.

Initial public offerings (IPOs) cannot be bought or sold on margin by an underwriter or selling gro