A margin account is a type of brokerage account that allows customers to borrow money from their broker to buy securities, following regulations from the Federal Reserve Board, the National Association of Securities Dealers (NASD), the New York Stock Exchange, and individual brokerage house rules.
A takeout loan in real estate refers to a long-term mortgage loan made to refinance a short-term construction loan. In the securities industry, takeout refers to the withdrawal of cash from a brokerage account, usually after a sale and purchase have resulted in a net credit balance.
