Buying on margin means you are borrowing part of the value of the stock purchase from the brokerage firm.

Name: Buying on margin means you are borrowing part of the value of the stock purchase from the brokerage firm.
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When buying on margin, the investor borrows a portion of the funds necessary to purchase the stock from the brokerage firm. This creates leverage but also involves the investor in greater risk if the stock loses value.

Buying on Margin Means You Are Borrowing Part of the Value