--%>
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 : Barriers to entry and long run

    A firm which realizes an economic profit in the short run will carry on generating economic profits in the long run only when: (i) it maximizes economic revenue. (ii) barriers to entry prevent entry from rival firms. (iii) its managers minimize princi

    		•
  • Q : Consumer Surplus-Difference in amounts

    Kiley pays $1.00 for the cold Pepsi on a hot afternoon, however would be willing to pay $5.00. The $4.00 difference in such amounts is her: (i) Consumer surplus. (ii) Income effect. (iii) Economic gain. (iv) Marginal utility. (v) Pleasure coefficient.

    Q : Labor Force Participation Rates The

    The percentage of a specified population who are either unemployed or employed is termed as the: (1) labor force participation rate. (2) work-force proportion. (3) labor supply. (4) substitution effect dominance rate. (5) income-leisure loss curve.

    Q : Contrast of the law of reducing

    Which of the given seems a contrast of the law of reducing marginal utility? (i) Howard quit utilizing grocery coupons if he won the lottery. (ii) Joan finds that her try in preparing for a date surpasses the enjoyment gained. (iii) Ken enjoys his thi

    		•
  • Q : Defined Welfare Recipients By

    By description, a family of four receives welfare when it: (1) pays a smaller share of taxes than its share of benefits from government. (2) lives below the poverty line. (3) includes a student attending college on an academic scholar

    		•
  • Q : Effects of price hike in Substitution

    Price hikes for the new cars are probable to cause the demand for employed cars to (1) Shift to the right. (2) Pivot vertically. (3) Shift to the left. (4) Become more horizontal. Can someone please help me in finding out the accur

    		•
  • Q : Marginal cost curve in market power

    Above the minimum average variable cost curve, the marginal cost curve is not the supply curve of a monopoly since, unlike purely competitive firms, firms along with market power: (w)

    		•
  • Q : Elasticity of demand curve In which

    In which form of market, the demand curve is more elastic and why? Answer: Demand curve is more elastic under monopolistic since of the availability of close substitute.

    		•
  • Q : Union Shop Agreements The union shop

    The union shop agreement needs that the worker: (1) Join the labor union prior to beginning to work. (2) Pay union dues even when selecting not to join union. (3) Join the union soon subsequent to being hired. (4) Freely select to join or not join union.

  • Q : Substitution Effect-relative price of

    The substitution effect signifies to the change in consumption pattern as: (1) The absolute price of the good modifications. (2) Income changes. (3) The relative price of good changes. (4) The quality of good changes. Can someone p

    		•