Economic profit and Margin: Difference between pages

Revision as of 12:34, 20 June 2016

1.

Accounting.

Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.

2.

Bank lending.

Lending margin is a percentage amount added to a market reference rate, to calculate the total rate of interest payable by a borrower.

3.

Derivatives markets.

Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default.

4.

Financing.

An amount built in to an interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.

5.

Secured lending.

An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.

Also known as a 'haircut'.

@@ Line 1: / Line 1: @@
-(EP).
+.
-The profit over and above the return which investors could have earned by investing elsewhere at the same level of risk.
+''Accounting''.
-Also known as ''supernormal profit''.
+Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.
+.
+''Bank lending''.
+Lending margin is a percentage amount added to a market reference rate, to calculate the total rate of interest payable by a borrower.
+.
+''Derivatives markets''.
+Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default.
+.
+''Financing''.
+An amount built in to an interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
+.
+''Secured lending''.
+An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
+Also known as a 'haircut'.
 == See also ==
-* [[Normal profit]]
+* [[Collateral]]
+* [[Futures]]
-[[Category:Corporate_finance]]
+* [[Haircut]]
+* [[Initial margin]]
+* [[Maintenance margin]]
+* [[Margin risk]]
+* [[Stepped margin]]
+* [[Tax sparing]]
+* [[Variation margin]]
+* [[WGMR]]