The advantage of buying on margin is:
A) larger potential profit
B) using more of your own money
C) deductible loss
D) non-taxable capital gain

Question

Quizplus · Accepted Answer

Buying on margin allows an investor to control a larger amount of assets with a smaller amount of their own funds, potentially leading to larger profits if the investment goes well. However, it also carries the risk of larger losses if the investment doesn't perform as expected. The other options listed are not advantages of buying on margin.

The Advantage of Buying on Margin Is