Definition of Adjusted Debit Balance (ADB)

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Adjusted Debit Balance (ADB) -- Methodology for working out the status of a margin account as stipulated by Regulation T of the Federal Reserve Board. The ADB formula calculates the net balance from what is due to the broker, balance in the Special Miscellaneous Account, and paper earnings on short accounts. Regulatory changes in 1982 reduced the importance of ADBs but the formula continues to be practical for deciding whether cash or security withdrawals are acceptable on the basis of SMA entries.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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