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LSDefine

Simple English definitions for legal terms

buying on margin

Read a random definition: liege poustie

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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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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