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This is a core business line of broker dealers. However I believe in the US your risk is limited to 140% of the value of your margin loan. If you have no margin
by balderdash 4y ago
This is a core business line of broker dealers. However I believe in the US your risk is limited to 140% of the value of your margin loan. If you have no margin loan then your securities need to kept in a separate/segregated client account.
This all was a big problem I. The us up through Great Depression, and then the securities exchange act of 1934 was implement to regulate these practices quite successfully over the years.