Buying On Margin Quizlet May 2026

Buying on margin is the practice of purchasing stocks by paying a small percentage of the price (a down payment) and borrowing the remaining balance from a broker. This strategy uses to increase buying power, allowing investors to control more shares than they could with cash alone. Key Concepts and Terminology

: The minimum percentage of the total purchase price an investor must pay in cash. Currently, the Federal Reserve's Regulation T generally requires an initial margin of 50% . buying on margin quizlet

: The minimum amount of equity an investor must maintain in their margin account after the purchase. Buying on margin is the practice of purchasing