Business, 20.03.2020 09:46 davisearron

If you buy 100 shares of IBM for $120/share, and the margin on your account is 50%, the broker will float you an interest-free loan of $6,000, until the price of IBM sufficiently rises to the point where you are willing to sell. You pay the broker back its $6,000, and you enjoy the capital gain.

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If you buy 100 shares of IBM for $120/share, and the margin on your account is 50%, the broker will...

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