In margin buying you borrow shares to sell now and buy back the shares later and return those. True or False

Question

Lacey Bauer

Business

7 June, 12:21

In margin buying you borrow shares to sell now and buy back the shares later and return those. True or False

+5

Answers (1)

Know the Answer?

Melissa · Answer 1

False

Explanation:

When you buy on margin you are borrowing money from your broker in order to purchase securities. The advantage of buying on margin is that you can purchasing a larger amount of stocks, but that also increases the risk of your investment as well as the potential returns.