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Q: What did it mean to buy stocks on margin?
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What does it mean to buy stocks on margin?

Margin means you're borrowing money to buy stock. It's also one of the few ways you can lose more in the stock market than you invested in the first place.


What does it mean to buy stocks''on margin''?

Margin means you're borrowing money to buy stock. It's also one of the few ways you can lose more in the stock market than you invested in the first place.


How did buying on margin allow more people to invest in market?

Buying on margin allow people to buy more stocks with only a fraction of the cash needed to buy those stocks. These allowed more people to invest in the stock market that would not afford to come up with the full cash to buy the stocks in question.


Which of these describes the process in which investors can buy stocks worth much more than they have to pay for them?

buying on margin A+


What is wrong with buying stock on margin?

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.


What does stocks on margin mean?

05/08/08 Buying on margin means that you are buying your stocks with borrowed money_______________________________________________________________It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.


How do you short stocks?

how to short stocks


Buying stocks on credit is called?

margin


The purchase of stocks and bonds is?

buying on margin


When would an investigator not want to purchase stocks by buying on margin?

When he anticipate high volatility as it may lead to squaring of his stocks or positions due to decrease in minimal margin to support the position.


Buying on margin in the 1920s?

When investors could buy stocks for as little at 10% down-payment and then when the stock rose in price they could sell it and make a profit.


What does stock margin mean?

05/08/08 Buying on margin means that you are buying your stocks with borrowed money_______________________________________________________________It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.