Terms Beginning With 'h'

High-Ratio Loan

A high-ratio loan is a type of loan where only a relatively small down payment is required. It is a loan in which the value of the loan is high compared to the value of the property which is used as collateral. For instance, a mortgage loan with a down payment of less than 20 per cent of the property price.

High Leveraged Transaction is defined as a bank loan given to a company which is already in huge debt.

Margin is the borrowed money, used to buy an investment, from a brokerage firm and is the difference between the total value of securities held in the loan amount from the broker and an investor's account.

A margin account is also known as brokerage account or loan account, in which the customers can borrow money from brokers in cash to buy stocks or any other financial products. A margin account is only appropriate for a sophisticated investor, as the investor has the potential to lose more money than the deposited funds in the account.

Backlog is an accumulation of work that needs to be completed, and the term has a variety of uses in the accounting process. The uncleared company’s sales orders and pending loan applications are some of the examples of backlog. The backlog figures may impact the company’s future earnings.

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