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"Buying on Margin" meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest. If the stock price dropped too low the broker could issue a "Margin Call" which means that the person has to repay all of the money that the broker put down. People often used this in the 1920s in order to buy more stock for less. i.e. Instead of buying 5 stock for $10, he could buy 50 stock for $10 and a loan from the broker.
If you were to sell the stock, the broker would get his money back plus a portion of the profits.
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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 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.
What does stocks on 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.
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 to cover a stock?
If you are buying to cover a stock, it means that you have sold short the stock (borrowed the stock and then sold it in the expectation of the stock price dropping).
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 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.
What does stocks on 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.
What does does buying a stock on margin mean?
Buying on margin means the broker you use will lend you additional money to trade, but they also begin charging interest for the money as soon as you use it. It's a little like a credit card, but you have to pay interest from the moment you use the money. You must fill out an application for a margin account and be approved by the broker. There is a chance too for what's called "a margin call." This can occur if a stock you buy on margin goes down to a point they deem is too low and they'll want you to put more money in the account to help cover the loss. Also, if a trader wants to short stocks they'll need to open a margin account to do so. I have a margin account, but rarely use it unless the general market trend up is very strong or if I want to short. Otherwise, you can really get in a bad way if the stock goes down and you're paying 10% on the original balance too. Trade on! http://stock-trading-warrior.com
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.
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.
What does it mean to buy to cover a stock?
If you are buying to cover a stock, it means that you have sold short the stock (borrowed the stock and then sold it in the expectation of the stock price dropping).
What do mean by buying and selling of securities?
Buying and selling securities refers to the stock market usually. It is the buying and selling of stocks and mutual funds to make a profit.
When buying a business what does PRICE plus PE plus SAV mean?
SAV means Stock at Valuation. So when the business is brought it is the value of the stock on hand at the time of settlement.
