consequences margin purchase contract ( comparative study )

Abstract

The margin purchase contract does not differ from other contracts in terms of arranging the effects on each of the two parties. In this contract, the client has implications for his commitment to pay the price of the securities purchased for his account and his commitment to pay the commission, expenses and financing costs, and what distinguishes the margin purchase contract from the rest of the contracts It is the method of paying the price, so the client who wants to buy securities does not pay the price of the securities completely from his own money initially, but puts a margin of the price of the securities in the margin account with the brokerage company, and this margin is determined by agreement between the company and the client after the legislator has set a minimum Him may notThe customer or the company has a violation, as for the company, it has a set of obligations, the most important of which is its obligation to open a margin account for the customer and finance part of the price of the securities purchased for his account and its commitment to purchase securities for the client’s account. In our research, we will try to present the most important obligations of the customer and the company in the margin purchase contract, by dividing the research into two topics.