PDF Buying Stock on Margin Can Reduce Risk

earnings. But they can buy stock on margin or gain leverage by buying stock derivatives. If a young investor with $10,000 in savings and a lifetime wealth of $100,000 were to buy stock on 2:1 margin, the resulting $20,000 investment would still leave her well short of the desired $60,000 in equities. Buying stocks on 3:1 margin would get her ... ................
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