Question

Many investors bought stocks on - ---, meaning they made only a small cash down payment with the rest coming as a loan from a_____________.

Answer 1

Answer:

Margin; stockbroker

Explanation:

Buying stocks on margin means that the investor is buying the stocks by using the leverages or the amount borrowed from either bank or stock borrowers.

In this system of buying the stocks, the investor makes a down-payment of certain percentage of the value of the stocks and rest of the amount is paid by loan.