Want this question answered?
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, 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
Buying on Margin
Buying on credit is also called Buying on Margin
Buying on Margin is a technique using borrowed money to make purchases and using those purchases as collateral.
buying on margin.
Stock Market crash of 1939 , use of credit , dust bowl , buying on the margin , buying on speculation , bonus army , lynching , hoovervilles ,
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.
Margin is only offer on purchase of securities.
Buying on margin is borrowing money from a broker to purchase stock.
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
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.
Margin is only offer on purchase of securities.
Margin is only offer on purchase of securities.
Margin is only offer on purchase of securities.
Buying on Margin
Buying on margin can deplete a person's portfolio and can be a devastating thing.