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There is nothing wrong in buying stocks on margin. What the investor must recognize is that there is more risk involved. Aside from the purchased stocks going down, the added burden is having to pay interest on the borrowed funds or the "margin". The other danger is that an investor using margin can buy more stocks. Over speculation can either vastly be beneficial or be a personal income disaster.
What else can I help you with?
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
What is Borrowing money to buy stock?
Buying on margin
What is the term for buying stock with borrowed money?
Margin.
Buying stock on margin remained profitable as long as .?
stock prices rose
What is the difference between buying on margin and margin call?
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 does buying on margin mean?
Buying on margin is borrowing money from a broker to purchase stock.
What is buying stock on credit called?
Buying on margin.
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 is Borrowing money to buy stock?
Buying on margin
What is the term for buying stock with borrowed money?
Margin.
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 is the difference between buying on margin and margin call?
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 stock on margin and buying on the installment plan are similar in that both?
They are both forms of borrowing.
What does stock margin mean?
05/08/08 Buying on margin means that you are buying your stocks with borrowed money_______________________________________________________________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.
Is buying on margin still illegal?
Yes, buying on margin was made illegal buy the Trust-in-Sercurities Act before the Great Depression. This Act was one of the reasons the stock marketcrashed, as people could not pay money they did not have anymore.
