Laura read about Living Longer Biotechnology, Inc., and wants to buy 100 common shares at $45 per share. Unfortunately, she only has $3,000 available to invest. One risky strategy Laura could consider is:

Question

Quizplus · Accepted Answer

Buying on margin is a risky strategy where an investor borrows money from their broker to buy securities. Laura could use her $3,000 to buy 66 shares and borrow the remaining $1,980 from her broker. However, she needs to be aware of the risks involved with margin trading, such as potential losses if the stock price declines.

Laura Read About Living Longer Biotechnology, Inc