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What else can I help you with?
What is the disadvantage of buying stock?
You might lose money in the stock market.
What is buying on margin?
its borrowing money to invest in the Stock Market
What is Borrowing money to buy stock?
Buying on margin
What is the term for buying stock with borrowed money?
Margin.
What does it mean to buy a stock on margin?
buying stock on margin is buying stock with money you dont have. in essence buying with credit. this is now illegal i believe as it was one of the culprits behind the great depression
What does buying on margin mean?
Buying on margin is borrowing money from a broker to purchase stock.
Buying the call option is risky?
Buying calls isn't very risky. If the option expires out-of-the-money, all you lose is your premium. If it expires enough in-the-money to cover the price of the stock plus the premium on the call, you make money--potentially a LOT of money if the stock price shoots up.
How con i earn money by stock exchange?
You can earn money through stock exchange by buying only the high quality stocks, and ensuring that you keep within the margin of safety.
What is preferred stock and why is the US Government buying it as part of the bailout plan?
Unlike common stock, preferred stock can be converted to bonds at the discretion of the owner. The government, by buying preferred stock, gets the rapid growth of stock with the safety of bonds. If there is any money left over after bankruptcy, bond holders are paid first. If there is any money left, after that, common stockholders are paid.
Why was buying on a margine risky?
If the stock has not gone up when the margin call is due, you lose money.
What is speculation buying?
Speculation buying is investing in short term investments and hoping to earn money on market fluctuations. It is different than buying stock in a company based on the company's value.
What did buying stock on margin mean in the 1920's?
"Buying on Margin" meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest. If the stock price dropped too low the broker could issue a "Margin Call" which means that the person has to repay all of the money that the broker put down. People often used this in the 1920s in order to buy more stock for less. i.e. Instead of buying 5 stock for $10, he could buy 50 stock for $10 and a loan from the broker. If you were to sell the stock, the broker would get his money back plus a portion of the profits.
