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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
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∙ 13y ago
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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 is Borrowing money to buy stock?
Buying on margin
What did buying stock on margin mean in the 1920's?
"Buying on Margin" meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest. If the stock price dropped too low the broker could issue a "Margin Call" which means that the person has to repay all of the money that the broker put down. People often used this in the 1920s in order to buy more stock for less. i.e. Instead of buying 5 stock for $10, he could buy 50 stock for $10 and a loan from the broker. If you were to sell the stock, the broker would get his money back plus a portion of the profits.
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
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.
What does it mean to buy 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.
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 is Borrowing money to buy stock?
Buying on margin
What does buying on margin mean?
Buying on margin is borrowing money from a broker to purchase stock.
Who does buying a stock on margin mean?
buying stock for a fraction of its cost and borrowing against future profits
What did buying stock on margin mean in the 1920's?
"Buying on Margin" meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest. If the stock price dropped too low the broker could issue a "Margin Call" which means that the person has to repay all of the money that the broker put down. People often used this in the 1920s in order to buy more stock for less. i.e. Instead of buying 5 stock for $10, he could buy 50 stock for $10 and a loan from the broker. If you were to sell the stock, the broker would get his money back plus a portion of the profits.
What is the practice by which the buyer uses some of his or her own money to buy stock and borrows the rest from a broker?
Margin. :]
What does the Federal Reserve Bank of New York do to decrease the amount of stock purchased on margin?
Buy Back
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
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.
Why was stock bought on margin considered a risky investment?
Why was stock bought on margin considered a risky investment
