Margin is the money borrowed from a broker to buy an investment and is the difference between the total value of the investment and the loan amount.
Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset that is collateral for a loan from a broker.
A margin account is a standard brokerage account where an investor is allowed to use the current cash or securities in their account as collateral for a loan.
The leverage provided by margin will tend to increase both profits and losses. In the event of a loss, a margin call may require your broker to liquidate securities without prior consent.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.