When you buy a stock on margin, your gain is magnified if the stock goes up in value.

Name: When you buy a stock on margin, your gain is magnified if the stock goes up in value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Buying on margin allows you to purchase more stock than you could with just your available cash, so if the stock's value increases, your percentage gain is greater compared to the initial investment. However, losses are also magnified if the stock's value decreases.

When You Buy a Stock on Margin, Your Gain Is