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Can you sue a broker for buying stocks on margin when not authorized to do so?
Wiki User
∙ 16y ago
when you opened the account you probably opened with margin. If you bought more stock than you had cash for and were leveraged against your will and had to sell out or got a margin call you can go to arbitration. You waived your right to sue wen you opened the account, you have to go arbitration which can work out better for you.
Wiki User
∙ 16y ago
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Buying stocks on credit is called?
margin
The purchase of stocks and bonds is?
buying on margin
Buying on margin was a method of buying stocks?
with mostly borrowed money
Do I have to sign up with a broker company for buying stocks online?
You can buy and sell stocks online without having a broker. Ameritrade and Zecco are very good companies.
What does stocks on margin mean?
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.
How did buying on margin work?
Buying on margin allowed investors to borrow money from their broker to purchase stocks. This meant they only had to provide a percentage of the total cost of the stock as collateral, while the broker would lend them the rest. The investor would then pay interest on the borrowed amount. If the stock price increased, the investor could sell the stock and repay the loan with the profits. However, if the stock price decreased, the broker could issue a margin call, requiring the investor to deposit more funds to cover the loss.
Buying stocks on the chance of a quick profit without considering risks is known as?
buying on margin.
The practice of buying stocks with an initial down payment of only 10 of the stock price was known as?
buying on margin
When would an investigator not want to purchase stocks by buying on margin?
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.
Can you explain what short selling stocks are?
In purchasing stocks, you buy a piece of ownership in the company. The buying and selling of stocks can occur with a stock broker or directly from the company.
Explain why buing on margin can be a profitable system?
Buying on margin is profitable in a bull market especially when the stocks pay a high dividend.
What is wrong with buying stock on margin?
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.
