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What is an on margin purchase?

Updated: 9/16/2023
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11y ago

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A risky technique involving the purchase of securities with borrowed money, using the shares themselves as collateral. Usually done using a margin account at a brokerage, and subject to fairly strict SEC regulations.

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Related questions

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

Margin is only offer on purchase of securities.


What does buying on margin mean?

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


The purchase of stocks and bonds is?

buying on margin


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

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 plan?

Margin is only offer on purchase of securities.


What are margin requirements?

Margin requirements are the amount of credit granted investors for the purchase of securities, such as shares of stock.


What is a margin account?

A " Margin Account" is a type brokerage account in which the broker-dealer lends the investor cash, using the account as collateral, to purchase


Is an on margin purchase?

A risky technique involving the purchase of securities with borrowed money, using the shares themselves as collateral. Usually done using a margin account at a brokerage, and subject to fairly strict SEC regulations.


Why is buying on margin a problem?

Because you never know you'll use your purchase or not


What cost more a Ferrari are a Mustang?

Which is cheaper to purchase? Mustang - by a considerable margin.


What happens when Currency traders buy on margin?

When currency traders buy on margin they borrow money from their broker. They do this in order to make a larger currency purchase.