It's to borrow money from the bank and pay back later.
Buying on margin is borrowing money from a broker to purchase stock.
If they had bought a very large amount of stock on margin (and many did) and the "margin call" came in shortly after that with the market collapse (and it happened to countless people) they were, in effect, instantly bankrupt.
its borrowing money to invest in the Stock Market
Bought on margin.
Yes, buying on margin was made illegal buy the Trust-in-Sercurities Act before the Great Depression. This Act was one of the reasons the stock marketcrashed, as people could not pay money they did not have anymore.
Why was stock bought on margin considered a risky investment
Buying on margin is borrowing money from a broker to purchase stock.
stock prices rose
stock prices rose
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
If they had bought a very large amount of stock on margin (and many did) and the "margin call" came in shortly after that with the market collapse (and it happened to countless people) they were, in effect, instantly bankrupt.
Buying on margin
Margin.
its borrowing money to invest in the Stock Market
Buying on margin.
Margin requirements are the amount of credit granted investors for the purchase of securities, such as shares of stock.
The amount of margin debt being used to purchase stocks on the NYSE is ... money; Japan's Nikkei is up 35% this year, 50% more than the S & P 500, ... Consulting some of the most astute bubble analysts led us to a brillian.