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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.
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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
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Why did people buy stocks on the margin in the 1920s?
Same reason they do today....leverage. Buying say $1,000 of stock that you believe is going up...and it does say 20% earns you $200. On margin, the same $1,000 may get you 3 times as much stock, so...
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When to buy stock?
The best time to buy would be when a stock is trading below its intrinsic value.
Using different models (Discounted Cash Flow, PE-Earnings Growth,etc.) you can estimate the intrinsic value -- or...
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Where to buy stocks?
Auto Zone is the best place.