stock prices rose
Buying stocks on margin remained profitable as long as the value of the stocks purchased increased sufficiently to cover the cost of interest on the borrowed funds and any potential losses. Additionally, maintaining a margin account requires a certain level of equity; if stock prices decline significantly, investors may face margin calls, requiring them to deposit more funds or sell assets to maintain their positions. Therefore, a rising market trend is crucial for margin investing to remain advantageous.
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
Margin.
Buying on margin
stock prices rose
stock prices rose
Buying stocks on margin remained profitable as long as the value of the stocks purchased increased sufficiently to cover the cost of interest on the borrowed funds and any potential losses. Additionally, maintaining a margin account requires a certain level of equity; if stock prices decline significantly, investors may face margin calls, requiring them to deposit more funds or sell assets to maintain their positions. Therefore, a rising market trend is crucial for margin investing to remain advantageous.
Buying on margin is borrowing money from a broker to purchase stock.
Buying on margin.
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.
Buying on margin
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
They are both forms of borrowing.
stock prices rose