Buying on the Margin
"You have to spend money to make it"
- Borrowing money to buy stock in the hope that it will go up and you can repay the loan and collect the difference.
- Theory of using borrowed money to buy stock
- Terms to pay back
- Had to make more than 10% to make money
- If stock went down you can’t pay original stock.
- No regulations
- Banks make guaranteed money
Buying on the margin is when you borrowing money from a broker and then repay it along with income tax after the aloted time.