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05/08/08 Buying on margin means that you are buying your stocks with borrowed money

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It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.

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Maynard Windler

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3y ago

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Related Questions

What does buying on margin mean?

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


What does it mean to buy a stock 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


Who does buying a stock on margin mean?

buying stock for a fraction of its cost and borrowing against future profits


What does it mean to buy on margin?

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.


Why was stock bought on margin considered a risky investment?

Why was stock bought on margin considered a risky investment


What does it mean to buy stocks on margin?

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.


What does it mean to buy stocks''on margin''?

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.


Buying stock on margin remained profitable as long as?

stock prices rose


Buying stock on margin remained profitable as long as .?

stock prices rose


What happen when a person bought a stock on margin?

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.


What is the term for buying stock with borrowed money?

Margin.


What is buying stock on credit called?

Buying on margin.