When investors buy stock with borrowed funds, this is sometimes referred to as
A)use of proxy.
B)purchasing stock on margin.
C)a margin call.
D)a margin residual claim.

Name: When investors buy stock with borrowed funds, this is sometimes referred to as A)use of proxy. B)purchasing stock on margin. C)a margin call. D)a margin residual claim.
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Question

Quizplus · Accepted Answer

Purchasing stock on margin refers to the practice of buying stocks by borrowing funds from a broker, with the bought stocks serving as collateral for the loan.

When Investors Buy Stock with Borrowed Funds, This Is Sometimes