(1) in futures trading, a specific dollar amount, set by each exchange, that both buyers and sellers must deposit as a guarantee that both will perform as agreed to make or take delivery during a designated period of time. The deposit is held by the clearing organization of the exchange. (2) in stock transactions, margin refers to the down payment required when borrowing from a broker to finance the purchase of stock.Answer
Margin is borrowing money to buy securities. The upside of margin is it amplifies gains. The downside is it amplifies losses. There are only two ways to lose more money than you invest in the stock market: selling naked calls, and margin trading.
its borrowing money to invest in the stock market
Margin trading is where speculators borrow money and invest it into the stock market. It is risky, because, if the Stock Market crashes, the speculator has no means to pay off the loans.
Margin of Safety
Margin requirements that are too liberal can damage the stock market and the economy.
It allowed more people to invest in the stock market.
If you are referring to the stock market crash of 1929, that was the beginning of the Great Depression.
Regulated stock market and restricted margin buying.
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.
It is called using margin or leverage.
To invest in Indian stock market and earn profit, buy high quality stocks, and within its margin of safety.
People bought stocks on margin andfor the most they went on living theway when the stock marketcrashedand waited for somethings to change
excessive sepulation and buying on the margin
Buying stocks on margin and speculation. As stock prices fell, people sold stocks. This flooded the market with stocks no one wanted.
The term play stock market could be referring to a number of things. There are virtual stock markets that you can begin trading on that do not have the financial risk associated with real stock trading.
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.
Crash of an overbought, by use of margin buying, stock market
The crash of the stock marketin 1929 and buying on the margin triggered the Great Depression.
There was over speculation in the Stock Market, which was not regulated. Many Americans purchased stock on credit. This was known as margin buying. Banks were permitted to speculate in land and the stock market with little government regulations. There was little, if any, government regulation of the stock market. Any company could claim their stock was worth so much and there was no way to check the validity of the worth of the stock.
it covers the expected loss in situations that go beyond those envisaged in the 99% value at risk estimates used in the VAR ( value at risk margin ) margin .
Define and elaborate on market margin?
Stocks were bid up on Margin (Loans) given to people in order to buy stock. They could not pay these loans back.
The amount of margin debt being used to purchase stocks on the NYSE is ... money; Japan's Nikkei is up 35% this year, 50% more than the S & P 500, ... Consulting some of the most astute bubble analysts led us to a brillian.
The Stock Market Crash of 1929 signaled the beginning of the Great Depression, it did not cause it. There was over speculation in the Stock Market, which was not regulated.Many Americans purchased stock on credit. This was known as margin buying. Inflated stocks indicated that not all companies listed on the Stock Exchange were healthy and economically sound.