When one purchases stock with a small down payment and borrows the rest of the purchase price this is called?

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1266704

2026-07-31 02:40

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When one purchases stock with a small down payment and borrows the rest of the purchase price, this is called buying on margin. This strategy allows investors to leverage their investments, potentially amplifying both gains and losses. However, it also comes with increased risk, as investors may face margin calls if the value of the stock declines significantly.

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