ggabrielgreyy
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  • 03-02-2021
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what does it mean to "buy on margin?" What are the advantages? What are the disadvantages

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Slin1777
Slin1777 Slin1777
  • 03-02-2021

Answer:

Buying on margin means when an investor buys an asset by borrowing the balance from a bank or broker. An advantage might be that when you buy securities on margin, you are able to leverage the value of securities you already own to increase the size of your investment. A disadvantage could be buying on margins

can lead to greater losses if the stock price drop.

Explanation:

Hope this helps.

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