WORLD WAR II 1941 1945
THE START OF THE SECOND WORLD WAR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buying them on credit, paying back later with the profits
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Buying them cheaply from those who had lost all their money
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Buying them quickly before anyone else could
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Buying them from the black market
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Detailed explanation-1: -Buying on margin involves getting a loan from your brokerage and using the money from the loan to invest in more securities than you can buy with your available cash. Through margin buying, investors can amplify their returns-but only if their investments outperform the cost of the loan itself.
Detailed explanation-2: -Understanding Buying on Margin Monthly interest on the principal is charged to an investor’s brokerage account. Essentially, buying on margin implies that an individual is investing with borrowed money. Although there are benefits, the practice is thus risky for the investor with limited funds.
Detailed explanation-3: -Buying on margin is borrowing money from a broker in order to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you’d be able to normally. To trade on margin, you need a margin account.
Detailed explanation-4: -Margin trading offers greater profit potential than traditional trading but also greater risks. Purchasing stocks on margin amplifies the effects of losses. Additionally, the broker may issue a margin call, which requires you to liquidate your position in a stock or front more capital to keep your investment.