margin lending back on mae, page-3

its when you borrow funds against your current portfoilios total value, to invest in shares based on a gearing ratio provided for a security by an institution.

Comsec have 40% lvr for MAE...

example (taken from Comsec example)

Investor's own capital $10,000 $10,000
CommSec Margin Loan - $20,000
Total investment $10,000 $30,000
Woolworths share price 30/6/2000 $ 6.165 $ 6.165
Shares Purchased 1,622 4,866
Woolworths share price 29/6/2007 $ 27.00 $ 27.00
Portfolio value 29/6/2007 $43,794 $131,382
Interest Cost - $11,638
Unrealised profit $33,794 $89,744
Dividends received $4,898 $14,695