# Minimum margin requirements

- Canonical URL: https://www.gerhardmerk.de/minimum-margin-requirements
- Post ID: 587301
- Modified: 2023-07-25T21:03:26+00:00
- Language: en

## Definition

Order by the central bank - as in the U.S.A. - or the supervisory authority that in the - installment purchase of long-term consumer goods, - credit purchase of securities, especially stocks, the purchaser must pay a certain percentage of the purchase price in cash. In countries where stock purchases are usually partially prefinanced by banks - in the U.S., approximately twenty percent - the demand for securities as a whole and for individual securities can be influenced in this way by setting different rates. - However, whether and to what extent an increase/decrease in minimum initial margin rates can avoid equity bubbles is debatable. - See payoff period, equity bubble, reverse stock purchase, bubble, speculative, boom-bust cycle, stock market fever, credit stocks, margin, minimum rates, installment purchase. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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