Buying stock on margin refers to customers making a small down payment and paying the rest stop overtime. True or false

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Trevor Rios

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3 September, 12:53

Buying stock on margin refers to customers making a small down payment and paying the rest stop overtime. True or false

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Adalynn Flores · Answer 1

Adalynn Flores 3 September, 13:10

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True

Explanation:

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Brodie · Answer 2

True

Explanation:

The above statement is true. Buying on margin is done when the person purchasing a stock pays a little amount or down payment to the broker for the stock. This kind of investment is also called as a borrowing investment, since it done by borrowing some money. Before investing, the person has to open its account as margin account and then he can work with his broker. Here some securities have to be given before opening a margin account