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Paying ten cents on the dollar for stock
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
Buying on Margin
Buying on credit is also called Buying on Margin
Buying on Margin is a technique using borrowed money to make purchases and using those purchases as collateral.
Margin
To get rich quicker
Paying ten cents on the dollar for stock
Stock market crash due to buying on margin and overextention of credit to buy consumer goods.
it was easier
it was easier
When investors could buy stocks for as little at 10% down-payment and then when the stock rose in price they could sell it and make a profit.
Margin is only offer on purchase of securities.
Buying on margin is borrowing money from a broker to purchase stock.
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
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.
during the 1920s people bought on margin and factories boomed