A stock loan is a process by which an investor borrows shares of a publicly traded company from a broker. The borrower agrees to sell the shares back to the broker at a pre-determined price on a future date. There are a few reasons why an investor might want to borrow stocks. Sometimes, an investor […]
Stocks What Is Margin
A margin account is a securities account in which the investor has borrowed money from the broker to purchase securities. The margin account allows the investor to buy more securities than the investor could ordinarily afford with the cash in the account. The margin account also charges a lower interest rate than a regular loan […]
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What Is Margin On Stocks
What is margin on stocks? Margin is a loan that a broker extends to an investor to purchase securities. It is essentially a down payment that allows investors to buy more shares than they could afford with cash. The margin requirement is the percentage of the purchase price of a security that must be paid […]
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How Does Margin Work For Stocks
Most people who trade stocks do so through a broker. This broker allows you to borrow money from them in order to purchase more stocks. This is called margin. Your broker will loan you a certain percentage of the purchase price of the stock. This is called the margin requirement. For example, if your broker […]
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14 Min
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