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julia-pushkina [17]
1 year ago
12

which if the following may not be purchased on margin but can be used as collateral for a margin loan after being held for 30 da

ys? a) mutual funds b) equities c) warrants d) options
Business
1 answer:
inn [45]1 year ago
3 0

A mutual funds is the instrument that may not be purchased on margin but can be used as collateral for a margin loan after being held for 30 days.

<h3>What is purchased on margin?</h3>

This generally involves the act of getting a loan from your brokerage and then, using the money from such loan to invest in more securities than you can buy with your available cash.

Through the method, an investors can amplify their returns if their investments outperform the cost of the loan itself.

In conclusion, the mutual funds can be purchased on margin. However, it  may be used as collateral for a margin loan after being held for 30 days.

Read more about mutual funds

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