Margin sale of Securities and its Impact on the Growth of the Iraqi Market for Securities A Comparative Study))

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Hadi Aneed Hassan

Abstract

The study has inferred that margin trading is based on the idea of raising the financial capacity of dealers in the financial market, and enabling them to buy as much of these securities as possible when their market price decreases, and then to sell them again when their price rises to obtain the profit achieved between the purchase price and the selling price. They depend on the loan they get from the broker in the financial market. Here as the broker gives this loan, he is the guarantor of his right to repay by keeping these securities purchased on margin as mortgaged to him to sell them again on behalf of the client in the market to get the value of the loan and the interest, and then he pays the remainder of its price to the client. Despite these interests mentioned, this type of dealing is not without risks. Due to a mistake in expectations or exaggeration in the purchase, the failure of increasing the price of securities again within the estimated period leads to the client’s big losses. In addition to the real risks that the broker faces due to not obtaining the value of the loan or the desired interest from it

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How to Cite
هادي عنيد حسان. (2023). Margin sale of Securities and its Impact on the Growth of the Iraqi Market for Securities A Comparative Study)). MIsan Journal of Comparative Legal Studies, 1(9), 327–357. https://doi.org/10.61266/mjcls.v1i9.282
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