Investors who earn larger returns because they borrow part of the money needed to by a particular stock are using which of the following techniques?

Question

Quizplus · Accepted Answer

Buying on margin allows investors to borrow money to purchase securities, which can increase potential returns. However, it also increases the risk of loss if the value of the securities decreases. Options trading (A and D) and short selling (E) are different techniques with their own risks and potential rewards, while direct investing (B) refers to simply buying and holding securities without borrowing money.

Investors Who Earn Larger Returns Because They Borrow Part of the Money