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Introduction to Margin

Dashboard > Chapter 10: Trading on Margin > Introduction to Margin

Introduction to Margin


What it is: margin = borrowing in order to purchase securities. You will get a bunch of questions on The Seven about margin. It's a very important topic, because it's a wonderful way for investors to blow themselves up. Quickly.  And they have: see Stock Market Crash of 1929. The exam questions will be both quantitative and qualitative, and some of the calculations can be tricky. This section on margin is really important, so pay attention.

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