active box Definition | Business Dictionaries from AllBusiness.com

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active box

collateral available for securing brokers' loans or customers' margin positions in the place-or box-where securities are held in safekeeping for clients of a broker-dealer or for the brokerdealer itself. Securities used as collateral must be owned by the firm or hypothecated-that is, pledged or assigned-by the customer to the firm, then by the broker to the lending bank. For margin loans, securities must be hypothecated by the customer to the broker.

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