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In Business / High School | 2014-11-18

________ is an on margin purchase.

A. A cash stock purchase
B. Buying stock on credit
C. Buying goods on credit
D. None of the above

Asked by TarahScotland

Answer (2)

Buying stocks on credit. because you're borrowing capital from a broker to buy stocks

Answered by Lejah | 2024-06-10

An on-margin purchase is when an investor buys stock using borrowed money, allowing for a larger investment with the potential for higher returns. However, this strategy comes with significant risks, especially if the stock value decreases. Therefore, the correct answer to the question is B: Buying stock on credit.
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Answered by Lejah | 2024-12-26

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