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LSDefine

Simple English definitions for legal terms

buying on margin

Read a random definition: Merchandise Marks Acts

A quick definition of buying on margin:

Buying on margin is when someone borrows money from a broker to buy stocks. This means they only have to pay a small percentage of the total cost upfront, but they have to pay back the loan with interest. If the value of the stocks goes up, they can make a profit, but if the value goes down, they can lose a lot of money.

A more thorough explanation:

Definition: Buying on margin is a type of investment strategy where an investor borrows money from a broker to purchase stocks. The stocks purchased serve as collateral for the loan.

Example: Let's say an investor wants to purchase $10,000 worth of stocks but only has $5,000 in cash. They can borrow the remaining $5,000 from a broker and use it to buy the stocks. The stocks purchased will serve as collateral for the loan. If the value of the stocks goes up, the investor can sell them and pay back the loan with interest. However, if the value of the stocks goes down, the investor may have to put up additional funds to cover the loan.

This example illustrates how buying on margin can be a risky investment strategy. While it can potentially lead to higher returns, it also exposes the investor to greater losses if the value of the stocks purchased decreases.

buying-in | BW

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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