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

Name: When you buy a stock on margin,your return is magnified if the stock goes up in value.
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Quizplus · Accepted Answer

Buying on margin means borrowing money from a broker to purchase a stock. If the stock goes up in value, the investor will make more profit than if they had purchased the stock with only their own capital. However, if the stock goes down in value, the losses will also be magnified.

When You Buy a Stock on Margin,your Return Is Magnified