46.5k views
0 votes
13. Explain "buying on the margin.”

1 Answer

4 votes

Answer: Buying with margin means buying an asset using leverage and borrowing a bank balance

Step-by-step explanation:

Buying with margin means buying an asset using leverage and borrowing a bank balance. It refers to the initial payment made to the bank for the asset that is purchased. The margin values ​​in the investor's account are the guarantee of the borrowed funds. Before buying, the investor must be approved and open an account with the bank.

User Ashley Kilgour
by
6.1k points