with mostly borrowed money
margin
buying on margin
buying on margin
05/08/08 Buying on margin means that you are buying your stocks with borrowed money_______________________________________________________________It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.
This is called Margin Loan or Margin Buying. Attention! Please don't just put smiley faces, it's annoying when someone needs the answer!
margin
buying on margin
buying on margin.
buying on margin
buying on margin
05/08/08 Buying on margin means that you are buying your stocks with borrowed money_______________________________________________________________It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.
This is called Margin Loan or Margin Buying. Attention! Please don't just put smiley faces, it's annoying when someone needs the answer!
Buying on margin is profitable in a bull market especially when the stocks pay a high dividend.
There is nothing wrong in buying stocks on margin. What the investor must recognize is that there is more risk involved. Aside from the purchased stocks going down, the added burden is having to pay interest on the borrowed funds or the "margin". The other danger is that an investor using margin can buy more stocks. Over speculation can either vastly be beneficial or be a personal income disaster.
buying on margin A+
When he anticipate high volatility as it may lead to squaring of his stocks or positions due to decrease in minimal margin to support the position.
Buying on margin allow people to buy more stocks with only a fraction of the cash needed to buy those stocks. These allowed more people to invest in the stock market that would not afford to come up with the full cash to buy the stocks in question.