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(1) in futures trading, a specific dollar amount, set by each exchange, that both buyers and sellers must deposit as a guarantee that both will perform as agreed to make or take delivery during a designated period of time. The deposit is held by the clearing organization of the exchange. (2) in stock transactions, margin refers to the down payment required when borrowing from a broker to finance the purchase of stock.
AnswerMargin is borrowing money to buy securities. The upside of margin is it amplifies gains. The downside is it amplifies losses. There are only two ways to lose more money than you invest in the stock market: selling naked calls, and margin trading.
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How did buying on margin reinforce the bull market?
It allowed more people to invest in the Stock Market.
How did buying on margin help reinforce help the bull market?
It allowed more people to invest in the Stock Market.
What is the stock market crash seen as the beginning of?
If you are referring to the stock market crash of 1929, that was the beginning of the Great Depression.
Which of these reasons was most likely the single cause of the stock market crash?
margin requirement
How did buying on margin help reinforce the bull?
It allowed more people to invest in the Stock Market.
What is buying on margin?
its borrowing money to invest in the Stock Market
What is on margin?
its borrowing money to invest in the Stock Market
How did buying on margin reinforce the bull market?
It allowed more people to invest in the Stock Market.
What happens when margin requirements are too liberal?
Margin requirements that are too liberal can damage the stock market and the economy.
What Securities and Exchange Commission formed in 1934 during the First New Deal still operates today by?
regulating the Stock Market and restricting margin buying.
How did buying on margin help reinforce help the bull market?
It allowed more people to invest in the Stock Market.
What did the federal security act do?
Regulated stock market and restricted margin buying.
What happen when a person bought a stock on margin?
If they had bought a very large amount of stock on margin (and many did) and the "margin call" came in shortly after that with the market collapse (and it happened to countless people) they were, in effect, instantly bankrupt.
What is the stock market crash seen as the beginning of?
If you are referring to the stock market crash of 1929, that was the beginning of the Great Depression.
How did speculation and buting on margin help to cause the stock market crash in 1929?
easy because the stock market let a lot of people take other peoples money so that is how the stock market crashed. ):
Probably the one single cause of the Stock Market crash was the lack of a?
margin requirement
What is borrowing money to invest in the stock market is called?
It is called using margin or leverage.
