A brokerage account which permits the investor to buy and sell securities on credit is a(n) ___ account.

Question

Quizplus · Accepted Answer

A margin account is a brokerage account in which an investor can buy securities on credit, using existing securities as collateral. This means that the investor can borrow money from the broker to make trades, increasing their buying power and potential profits. However, this also comes with increased risk, as losses can also be magnified.

A Brokerage Account Which Permits the Investor to Buy and Sell