1 answer

Question 9 Question 9 (0.5 points) Buying stock on margin lowers your risk by limiting the...

Question:

Question 9
Question 9 (0.5 points) Buying stock on margin lowers your risk by limiting the maximum size of your loss to the amount of yo
Question 9 (0.5 points) Buying stock on margin lowers your risk by limiting the maximum size of your loss to the amount of your own money that you invest. True False

Answers

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS FALSE

Buying stocks on margin actually increases the risk as there are more quantities traded on leverage and hence, both the profit and loss is escalated.

I hope this solves your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

.

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