Faye sometimes borrows money from her broker to buy her stock. She is buying

Name: Faye sometimes borrows money from her broker to buy her stock. She is buying
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Borrowing money from a broker to buy stocks is known as buying on margin. This allows the investor to increase their purchasing power and potentially earn larger profits, but also comes with increased risk as they are using borrowed funds. A call option, put option, direct investment, and short sale do not involve borrowing funds from a broker.

Faye Sometimes Borrows Money from Her Broker to Buy Her