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One major danger of buying stock on margin is the potential for significant financial loss. If the value of the purchased stock declines, investors are still responsible for repaying the borrowed funds, which can lead to substantial debt. Additionally, a margin call can occur, requiring investors to deposit more money or sell assets at a loss to cover the loan, amplifying the risk involved in margin trading. This leverage can result in both higher profits and devastating losses, making it a risky investment strategy.
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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 the term for buying stock with borrowed money?
Margin.
What is Borrowing money to buy stock?
Buying on 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 was on major danger of buying stock on margin?
If the stock price fell, the buyer still had to pay the balance owed.
What was one major danger of buying stock of margin?
If the stock price fell, the buyer still had to pay the balance owed.
What was one major danger of buying on stock margin?
If the stock price fell, the buyer still had to pay the balance owed.
What was one danger of buying stock on margin?
If the stock price fell, the buyer still had to pay the balance owed.
What was one danger of buying stock margin?
If the stock price fell, the buyer still had to pay the balance owed.
What was one major of buying stock on margin?
If the stock price fell, the buyer still had to pay the balance owed.
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.
