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Buying stocks on the chance of a quick profit without considering risks is known as?

buying on margin.


What does buying on margin mean?

Buying on margin is borrowing money from a broker to purchase stock.


What happened before the great depression?

Stock Market crash of 1939 , use of credit , dust bowl , buying on the margin , buying on speculation , bonus army , lynching , hoovervilles ,


What does it mean to buy a stock on margin?

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


Who does buying a stock on margin mean?

buying stock for a fraction of its cost and borrowing against future profits


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.


How is buying on margin similar to buying on an install.?

Margin is only offer on purchase of securities.


What is buying on margin, and why is it a problem sometimes?

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.


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


How is buying on margin similar to buying on an installment plan?

Margin is only offer on purchase of securities.


How is buying on margin similar to buying an installment plan?

Margin is only offer on purchase of securities.


How is buying on margin similar to buying on an installment plans?

Margin is only offer on purchase of securities.