powerprefection7661 powerprefection7661
  • 10-04-2019
  • Business
contestada

"Buying on margin was a method of buying stocks with mostly borrowed money" - true or false?

Respuesta :

MsTeel
MsTeel MsTeel
  • 10-04-2019

Answer:

True.

Explanation:

Buying on margin means purchasing stock with money borrowed typically from the broker, who will earn their money back when you make money on the sale of the stock. It is a risky method because if the stock loses value instead of gaining, you will still owe the money to the broker but not have a way to pay it back.

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