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In History / High School | 2025-07-07

The term "on margin" means:
A. paying the balance in full for an asset with no down payment.
B. paying a high-interest rate on a bank or broker loan for an asset.
C. paying the down payment on an asset and borrowing the balance.
D. paying a loan back for an asset only after profiting from a trade.

Asked by leahca1810

Answer (2)

The term "on margin" means borrowing money from a broker to purchase an asset, where the investor pays a down payment and finances the rest. It can amplify both potential gains and risks for investors. The correct interpretation in the given options is paying the down payment on an asset and borrowing the balance. ;

Answered by GinnyAnswer | 2025-07-07

The term "on margin" refers to borrowing money from a broker to purchase an asset, where the investor pays a down payment and finances the rest. This method can amplify both potential gains and risks for investors. Therefore, the correct choice among the options is C: paying the down payment on an asset and borrowing the balance.
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Answered by Anonymous | 2025-07-16

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