Current Market Value - CMV
In a margin account, an investor essentially engages in owning securities purchased for a total price greater than the amount of cash he/she has in his/her account; the investor borrows the excess cash needed from his/her brokerage to fund the remainder of the purchase.
Due to this leveraged purchase situation, the brokerage account values the investor's assets periodically, and if the total account value falls below the required margin amount, the brokerage will require the investor to top up the account with cash or to liquidate some or all of his or her securities into cash. The current market value (CMV) is the standardized price that is taken periodically to track the change in value of the investor's assets.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
current market value — The value of an asset which may be realized by liquidation within the present accounting period. Present value which may be realized in an arms length transaction between a willing buyer and a willing seller. See also fair market value … Black's law dictionary
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