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Example of buying on margin

Updated: 9/19/2023
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Q: Example of buying on margin
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What is the definition of the buying power of money?

"The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "excess equity." For example, if you have $1,000 cash in a margin account and the maximum margin rate is 50%, then your total buying power is $2,000. For a non-margin account, the buying power is equal to the amount of cash in the account." From Investopedia.com


How is buying on margin similar to buying on an install.?

Margin is only offer on purchase of securities.


What does buying on margin mean?

Buying on margin is borrowing money from a broker to purchase stock.


What is buying on margin, and why is it a problem sometimes?

What is buying on margin, and why is it a problem sometimes? The biggest risk from buying on margin is that you can lose much more money than you initially invested.


What is the difference between buying on margin and margin call?

Buying on margin, taking a "margin" loan from the broker to help buy part of a stock purchaseMargin call, this happens when the broker demands full payment of your "margin" loan


How is buying on margin similar to buying on an installment plan?

Margin is only offer on purchase of securities.


How is buying on margin similar to buying on an installment plans?

Margin is only offer on purchase of securities.


How is buying on margin similar to buying an installment plan?

Margin is only offer on purchase of securities.


1920 buying on credit was called buying on?

Buying on Margin


Explain why buying on margin can be a devastating thing?

Buying on margin can deplete a person's portfolio and can be a devastating thing.


What is another name for buying on credit?

buying on margin


What is buying stock on credit called?

Buying on margin.