Question

What does buying stocks on margin mean?

A)paying less than the market price of the stock.
B) purchasing the stock outside the regular stock exchange.
C) borrowing money to help pay for the stock.
D) buying the stock for someone else

Answer 1

The answer to this is

C) borrowing money to help pay for the stock

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Answer 2

Answer: C

Step-by-step explanation: A margin loan is used to buy stock. Every stock has a margin requirement that tells you how much is allowed to be borrowed in order to purchase that stock.