--%>
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 : Determine total revenue with formula

    Please help me to solve the problem of total revenue that is given below: Total revenue can be computed by the formula as: (w) P + Q. (x) P * Q. (y) ep * P. (z) ep * Q. Hello gu

    		•
  • Q : Economic growth Give the answer of

    Give the answer of following question. Economic growth is best defined as an increase in: A) either real GDP or real GDP per capita. B) nominal GDP. C) total consumption expenditures. D) wealth in the economy.

    		•
  • Q : Profit maximization for firm in pure

    Profit maximization for a firm within pure competition arises while: (w) MC = P = MR. (x) MC > MR. (y) AC = P. (z) MC = AC. Can anybody suggest me the proper explanation for given problem regarding Econo

    		•
  • Q : Rule of thumb for office rent Is there

    Is there any rule of thumb for office rent or on lease per gross income? If yes, then explain?

    		•
  • Q : Effect on total revenue by raises price

    A price raise from $6 to $8 would effect in: (1) a decrease in total revenue. (2) an increase in total revenue. (3) no change in total revenue. (4) consumers buying more pizza. (5) pizza parlors selling more pizza.

  • Q : Significant monopsony power-labor market

    The firm probable to have noteworthy monopsony power in its labor market would be the: (i) Big cotton farm in the Texas hiring migrant workers. (ii) Textile manufacturer in the Hong Kong hiring the factory workers. (iii) Janitorial service organization in London hirin

    		•
  • Q : Market Adjustments in outputs and

    Outputs and average prices for CDs and DVDs both rose throughout 1999 to 2000 (just before file sharing became ordinary), implying such that: (1) supply of prerecorded music should have grown. (2) law of demand does not apply to music. (3) demand for

    		•
  • Q : Funding crisis The Social Security

    The Social Security program in the United States faces a long-term funding crisis because: 1) the Social Security trust fund was exhausted in the year of 2002. 2) the number of retirees receiving benefits is rising more rapidly than the number of workers paying payrol

    		•
  • Q : Spending pattern in Substitution Effects

    I have a problem in economics on spending pattern in Substitution Effects. Please help me in the following question. Even when your real income were held steady by adjusting for price modifications, your spending pattern would react to modifications in relative prices

    		•
  • Q : Law of demand in Ceteris Paribus Can

    Can someone help me in finding out the right answer from the given options. The law of demand supposes that the income and tastes of the consumers are: (i) Strong determinants of the prices. (ii) Causes of movements all along the demand curve. (iii) C

    		•