contestada

when investors buy stock with borrowed funds, this is sometimes referred to as group of answer choices use of proxy. purchasing stock on margin. a margin call. a margin residual claim.

Respuesta :

tutorconsortium609

When investors buy stock with borrowed funds, this is sometimes referred to as "purchasing stock on margin".

What is Purchasing stock on margin?

Purchasing stock on margin entails borrowing money from your brokerage and investing it in more securities than you can buy with your available cash. Margin buying allows investors to increase their returns, but only if their investments outperform the cost of the loan.

When should you purchase stock on margin?

  1. As interest charges accumulate against you, your debt level rises over time. As debt grows, so do interest charges, and so on.
  2. Buying on margin is thus primarily used for short-term investments.
  3. The longer you hold an investment, the higher the required return to break even.

When investors buy stock with borrowed funds, this is sometimes referred to as purchasing or buying stock on margin,

To know more about buying stock on margin, check out:

https://brainly.com/question/15218129

#SPJ4

Otras preguntas