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Margin.

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Q: What is the term for buying stock with borrowed money?
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What is a borrowee?

A borrowee is an individual or a company that borrows money from a borrower, though this term is not correct. The grammatically correct term is borrowed.ex: XYZ lent money to ABC. XYZ sued the borrowed because it was not receiving its capital back.Although a word 'borrowee' is not a correct term, it is sometimes used in financial world of business to describe an entity that an individual or an institution has 'borrowed' money from, NOT the one borrowing who is the 'borrower.'example:A 'borrower,' out of desperation, 'borrowed' money from a 'borrowee' with high interest rate and caused himself to fall into deeper financial trouble.Also, 'borrowed' is not grammatically correct term of either a 'borrowee' or a 'borrower,' but is only a past form of a verb, 'borrow.'


What is the term for the money a stockbroker makes from the sale of stock?

commission


Which term best describes buying on margin during the 1920s?

Paying ten cents on the dollar for stock


What is the purpose of online stock trading?

Actually the purpose of online stock trading is "making money". Of course there different kind of strategies, like for example short term trader or long-term investors - but by the end of the day all people have one common goal: making money.


What is a stock broker?

In the US a stock broker is actually a salesperson who works for a company that buys and sells financial securities in stock and bond markets. Other financial instruments can be options or commodity futures. The job of a stock broker in the US is to give advice to clients that wish to participate in the financial markets. The salesperson makes money by earning a fee from his company with each trade his or her client makes. The term "broker" is misleading in that the actual buying and selling of stocks for example, are done by traders on the floors of various stock markets.

Related questions

What is the term used for all of the money borrowed by the government and the interest on the money that is borrowed?

public debt


What is speculation buying?

Speculation buying is investing in short term investments and hoping to earn money on market fluctuations. It is different than buying stock in a company based on the company's value.


What is the term for individuals who invest in a business by buying shares of stock?

Individuals who invest in a business by buying shares of stock are called stockholders or shareholders.


Which term refers to the predetermined amount an individual must pay for the use of borrowed money?

The predetermined amount an individual must pay for the use of borrowed money is called interest.


What is the definition of the term treasury stock?

The term "Treasury Stock" is defined as the stock that is brought back by the corporation that issued it earlier. The purpose of buying back the stock is either for resale or retirement and the availability of the outstanding stock is much reduced.


What term is used to describe when stock prices quickly and steadily increase?

a buying on the margin.


What is a borrowee?

A borrowee is an individual or a company that borrows money from a borrower, though this term is not correct. The grammatically correct term is borrowed.ex: XYZ lent money to ABC. XYZ sued the borrowed because it was not receiving its capital back.Although a word 'borrowee' is not a correct term, it is sometimes used in financial world of business to describe an entity that an individual or an institution has 'borrowed' money from, NOT the one borrowing who is the 'borrower.'example:A 'borrower,' out of desperation, 'borrowed' money from a 'borrowee' with high interest rate and caused himself to fall into deeper financial trouble.Also, 'borrowed' is not grammatically correct term of either a 'borrowee' or a 'borrower,' but is only a past form of a verb, 'borrow.'


What is the term for the money a stockbroker makes from the sale of stock?

commission


Which term best describes buying on margin during the 1920s?

Paying ten cents on the dollar for stock


What is prepay term?

Most often a "prepay term" is the time in which borrowed money can be paid off either without prepayment penalty or accrued interest or both.


What is the availability of stock?

Availability is a term used to indicate the availability of the stocks of a particular company for buying in the stock exchange. A highly available stock is one that is traded in large quantities and can be bought or sold at any time.


How is margin buying of stock similar to the mortgage crisis of today?

Very similar... in both cases long-term investments (stock or real property) were purchased on borrowed money. In the events leading up to the Great Depression, many people were buying stock on margin because they assumed that they would very easily be able to pay off their debts. When the market crashed and many people found themselves out of work, all of a sudden those debts became unpayable which led to an even greater financial collapse. In the case of the mortgage crisis, people were buying homes way beyond their means on credit. When the market crashed, once again many people found that they were unable to pay the large debts they took out, which led to many foreclosures and uncollectible debts by banks.