What is meant by buying stocks on margin?

Answer Trading on margin can be a great way to increase the return on a portfolio of investments, but it also carries serious risks. Before deciding to trade on margin, an investor must understand both th... Read More »

Top Q&A For: What is meant by buying stocks on margin

What does it mean to buy stocks on margin?

Buying stocks on margin is the purchase of stocks through use of the investor's own money as well as money that she has borrowed through her margin account. If an investor has a margin account, she... Read More »

What is meant by high-yield in stocks?

When described as high-yield, it means a stock's dividend yield is higher than average. In other words, it yields a large return in relation to its purchase price. High-yield stocks are not always ... Read More »

Margin Requirements for Stocks?

The Financial Industry Regulatory Authority (FINRA) establishes minimum margin requirements for those traders and investors purchasing securities on margin. Margin describes necessary collateral to... Read More »

What does buying stock on margin mean?

Buying stock on margin means to purchase shares of stock with borrowed money, usually from a broker. Buyers who expect a stock's share price to increase will borrow funds to leverage purchasing pow... Read More »