What is a Marginal Investor
S Walker
a 'Marginal Investor'. I don't know what this means and so I posted
here hoping somebody knows what such an investor is. I hope someone
does .
Thanks
Jason Chen
An investor who barely makes money? :-)
I guess I belong to this category.
C. Jason Chen
jc...@flash.bellcore.com
Mark Jakubowycz
investment. An example may do the trick. Lets say that you have IBM
BONDS. They are selling at a yield to maturity of 10%. A pension fund
(which is not taxed) actually gets a yield of 10%, assuming the bond is
not retired early. Now if you, as an individual who is taxed buy the
bond you will get an after tax yield of much less. This means that you
(the small investors) require only that much. You would be the marginal
investor. Actually the small investor would be the marginal investor.
Now if corporations buy the bonds and they have a tax rate of 50% then
they would become the marginal investor. The marginal investor sets the
price of the instrument.
[ | Reach out your hand, ]
[ Mark Jakubowycz | if your cup is empty. ]
[ (mj...@andrew.cmu.edu) | If your cup is full, ]
[ | may it be again. ]
Operator
: The marginal investor is the last investor to invest in a particular
I can't believe the information that is passed along ....
... A Marginal investor is a person who invests on Margin. That is the investor borrows money from their broker to buy more of the securities. The investor would open a Margin account with a certain amount of cash. They may be allowed 40% Margin or 40% credit towards the cash they have to invest. This 40% is borrowed and a loan rate applies. In this case a person may have $6000 and can buy $10000 worth of securities. There are many other indepth concepts that I can continue on but you can read a good boo
on the subject.
John
Mark Jakubowycz
asked what is a "MARGINAL" investor NOT a MARGIN investor. These are
two different topics. Your explanation of marginal was actually a
description of a MARGIN investor. I hope that you are not in the investment
business. The marginal investor is like the marginal product, marginal cost
and marginal revenue. If you ever read any theory you would know what the question
was. I wish people would stop calling other posts crap, especially if they
don't kinow what they are talking about. Perhaps we could get a clarification
on what the original question was...... By the way John, are you a nuclear
scientist that yuo never heard of "marginal investor".......
Sorry for my litte fit but.......
Michael Coulter
'Marginal Investor' might mean an one who invests on margin, i.e. with
borrowed money. The more normal usage would mean small-time investor.
-- Michael Coulter
Arthur S. Kamlet
>'Marginal Investor' might mean an one who invests on margin, i.e. with
>borrowed money. The more normal usage would mean small-time investor.
A "Marginal Investor" is one who writes in the tiny margins around
a stock certificate, " I have discovered a fantastic proof that
a^n + b^n = c^n; for some | n | > 2, but cannot fit it into this
margin."
--
Art Kamlet a_s_k...@att.com AT&T Bell Laboratories, Columbus
martin.brilliant
>
> 'Marginal Investor' might mean an one who invests on margin, i.e. with
> borrowed money. The more normal usage would mean small-time investor.
Due to transaction costs, the marginal investor is usually invisible.
Economists use the term "marginal" to refer to small movements on the
edge, where there is neither a net gain nor a net loss for a small
move. The hypothetical move must be small enough so that it doesn't
change the assumed conditions.
Even though small trades are assumed, the "marginal investor" is not
necessarily a small-time investor. The marginal investor is the one
who is indifferent to either buying or selling at the market price.
Who that is depends on how the market price is established.
The idea that there is a marginal investor is an interesting one, if
true. Most of the time there are people who want to sell at the asked
price, and others who want to buy at the offered price, and nobody at
the margin. I think that's because transaction costs are non-zero, so
the marginal investor never sticks his/her neck out.
Marty
ma...@hoqaa.att.com hoqaa!marty
Martin B. Brilliant (Winnertech Corporation)
Mark Halberstein
8-10 different definitions of the "marginal investor". Has
anybody else thought of asking the obvious question, what
context was the term used in? A posting of this would
probably solve The Big Mystery.
mjh
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