--%>
Assignment Help - homework help

Buying on margin

What does “buying on margin” means?

E

Expert

Verified

Purchasing any asset by paying the down payment or the requisite initial amount for the asset and borrowing the rest of the amount from the bank or broker is called as “buying on margin.” The investor is required to open a margin account with the broker, prior to buying on margin.

   Related Questions in Microeconomics

  • Q : Product Differentiation During product

    During product differentiation, the firms attempt to: (w) become price takers. (x) gain a degree of market power over their pricing and sales of their products. (y) increase the supply of their products. (z) raise the price elasticity of the demand fo

    		•
  • Q : Distribution of income in a purely

    For a specified distribution of income within a purely competitive economy, marginal social benefit will the same marginal social cost unless: (w) “hit and run” entrepreneurs prosper. (x) economic profits

    		•
  • Q : Cost structure characteristic in purely

    When Cling Peach Orchards has a cost structure characteristic of peach orchards into this purely competitive industry, when the long run new competitors would most likely enter the market providing the wholesale price per bushel of peaches exceeded: (

    		•
  • Q : Profit Maximization-Labor Markets If,

    If, after hiring the very last worker, the firm's profit is similar as it was before the last worker was hired, then the firm must: (1) Hire more workers to raise gain. (2) Layoff certain workers to raise the gain. (3) Not hire any more workers. (4) Shut down in short

    		•
  • Q : Economics like a social science Why is

    Why is economics seen like a social science?

    		•
  • Q : Exclusivity ratio of ratio while price

    The percentage change within quantity supplied divided through the percentage change within price is an approx measure of a good's: (w) unitary margin. (x) price elasticity of supply. (y) exclusivity ratio. (z) price elasticity of demand.

    Q : Goals of the Firm Most of the

    Most of the economists believe firms tend to proficiently maximize the profits since of: (i) Stockholder pressure. (ii) Competition for the management positions. (iii) Principal-agent conditions. (iv) The chance of corporate take-over.

    Q : Oligopoly in market structure Unlike a

    Unlike a monopolistically competitive firm, which an oligopoly is described by: (w) product differentiation. (x) extensive use of advertising. (y) conscious interdependence in decisionmaking by firms. (z) independence among firms.

    Q : Theory of microeconomic game in market

    The theory of market structure which several microeconomic game theorists were ready to toss within the dustbin of intellectual history into the 1970 year but that, in the early 1980s, turned into a foundation for the “new&rdquo

    		•
  • Q : Define Surveys or Polls Surveys or

    Surveys or Polls: The word survey or poll usually describes a method of gathering information from a sample of individuals. In contrast to a census, where all members of the population are studied, surveys collect details from only a part of a populat

    		•