What is the practice of buying on margin?

(A) Purchasing stocks without any prior knowledge of the company

(B) Using bank loans to purchase stocks

(C) Pooling money with a group of investors to buy stock

(D) Buying stocks when they are low and selling them when they are high

(E) Purchasing consumer goods using an installment plan

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Anderson

1 November, 10:46

What is the practice of buying on margin?

(A) Purchasing stocks without any prior knowledge of the company

(B) Using bank loans to purchase stocks

(C) Pooling money with a group of investors to buy stock

(D) Buying stocks when they are low and selling them when they are high

(E) Purchasing consumer goods using an installment plan

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Agustin Boyd · Answer 1

The practice of buying on margin entails " (B) Using bank loans to purchase stocks," since this is favorable for many people who lack the proper funds "up front" to purchase the stocks.