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In Business / College | 2025-07-07

Select the best answer for the question.

19. Buying _____ describes the purchase of financial products with borrowed money.

A. with cash
B. on margin
C. on recession
D. stock

Asked by jeannffer03271989

Answer (2)

The answer to the question is B. on margin, which describes the purchase of financial products with borrowed money. This involves using a broker's funds to buy more stock than the investor could afford on their own. While it can enhance potential gains, it also increases risks significantly. ;

Answered by GinnyAnswer | 2025-07-07

The correct answer to the question is B. on margin, which refers to buying financial products with borrowed money. This practice allows investors to purchase more assets than they could otherwise afford, increasing both potential gains and risks. Understanding the implications and risks of buying on margin is crucial for investors.
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Answered by Anonymous | 2025-08-26

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