___________________ is when an investor borrows money and invests t he borrowed funds along with his or her own funds in securities.
A) A short sale
B) A stop-loss order
C) A limit order
D) Buying on margin

Question

Quizplus · Accepted Answer

Buying on margin is the practice of borrowing money from a broker to purchase an investment. The investor uses the borrowed funds along with their own money to buy securities, with the hope of generating a higher return. This practice carries a higher degree of risk because if the investment performs poorly, the investor not only loses their own money but also owes back the borrowed funds with interest.

___________________ Is When an Investor Borrows Money and Invests T