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 […]
Why Can You Borrow Stocks
Borrowing stocks is a way to get exposure to a company or group of companies without actually buying the stock. When you borrow a stock, you are essentially borrowing someone else’s share of the company. You will be responsible for returning the stock at some point in the future. There are a few reasons why […]
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14 Min
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What Is A Margin Account In Stocks
A margin account is a type of brokerage account in which the account holder borrows money from the broker to purchase securities. The margin account holder is then responsible for repaying the loan plus interest. The margin account holder can also use the margin account as collateral to borrow money from the broker for other […]
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22 Min
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