"Margin" is borrowing money from your broker to buy a stock and using your investment as collateral. Investors generally use margin to increase their purchasing power so that they can own more stock without fully paying for it. But margin exposes investors to the potential for higher losses.
Let's say you buy a stock for $50 and the price of the stock rises to $75. If you bought the stock in a cash account and paid for it in full, you'll earn a 50 percent return on your investment. But if you bought the stock on margin - paying $25 in cash and borrowing $25 from your broker - you'll earn a 100 percent return on the money you invested. Of course, you'll still owe your firm $25 plus interest. The downside to using margin is that if the stock price decreases, substantial losses can mount quickly. For example, let's say the stock you bought for $50 falls to $25. If you fully paid for the stock, you'll lose 50 percent of your money. But if you bought on margin, you'll lose 100 percent, and you still must come up with the interest you owe on the loan.
Margin accounts can be very risky and they are not suitable for everyone. Before opening a margin account, you should fully understand that: * You can lose more money than you have invested; * You may have to deposit additional cash or securities in your account on short notice to cover market losses; * You may be forced to sell some or all of your securities when falling stock prices reduce the value of your securities; and * Your brokerage firm may sell some or all of your securities without consulting you to pay off the loan it made to you. You can protect yourself by knowing how a margin account works and what happens if the price of the stock purchased on margin declines. Know that your firm charges you interest for borrowing money and how that will affect the total return on your investments. Be sure to ask your broker whether it makes sense for you to trade on margin in light of your financial resources, investment objectives, and tolerance for risk
This process is called purchasing on margin. This is actually one of the leading causes of the stock market crash in the 1920's, when the margins were called and they were unable to be paid.
Products with the highest profit margins include prescription drugs, diamonds, fountain drinks, and designer clothing. Fountain drinks cost businesses a few cents, but cost consumers $1 to $2 on average.
the answer is stock
When a stock splits, one stock becomes two. People that own the stock can see the value of their stock for the company double.
Ex stock means existing in stock means ready to dispatch means ready in stock = Available in stock
custom margins
Profit margins are usually deducted from all costs, depreciation, interest, taxes, and other expenses. The formula is: (Total Sales - Total Expenses) / Total Sales = Profit Margin Note that preferred stock dividends are usually calculated, but not ordinary stock dividends.
It adjusts the margins on the page.
Usually the margins are referring to the space on the paper that is around the poem. Sometimes there are notes written in the margins.
they are margins that are 1 inch from the the paper
In the Margins was created on 2005-10-31.
Inside outside margins
There are a lot of different traits of good growth stocks. Two of the traits that connote a good stock are high profit margins and accelerating earnings growth.
Toward the Margins was created in 1996-05.
custom margins command
What margins can be increased for short letters?
yes earthquakes do occur on constructive margins and also the other plate margins as well. in fact all of them