Buying On Margin Quizlet -

Buying on margin is the practice of purchasing stocks by paying a small percentage of the price (a down payment) and borrowing the remaining balance from a broker. This strategy uses to increase buying power, allowing investors to control more shares than they could with cash alone. Key Concepts and Terminology

: The minimum amount of equity an investor must maintain in their margin account after the purchase. buying on margin quizlet

: The portion of the securities' value that the investor actually owns (Total Market Value - Loan Balance). Buying on margin is the practice of purchasing