05/08/08 Buying on margin means that you are buying your stocks with borrowed money
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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.
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
Why was stock bought on margin considered a risky investment
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.
stock prices rose
Margin.
Buying on margin is borrowing money from a broker to purchase stock.
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
buying stock for a fraction of its cost and borrowing against future profits
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.
Why was stock bought on margin considered a risky investment
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.
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.
stock prices rose
stock prices rose
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.
Margin.
Buying on margin