Q529
Situation in which large portion of majority is borrowed from broker of investor is classified as
A.
future investment
B.
forward investment
C.
leveraged investment
AnswerD.
non-leveraged investment
Answer: Option C
Solution
Answer: Option C
Solution:
Situation in which large portion of majority is borrowed from broker of investor is classified as leveraged investment. Leveraged investing is a technique that seeks higher investment profits by using borrowed money. These profits come from the difference between the investment returns on the borrowed capital and the cost of the associated interest. Leveraged investing exposes an investor to higher risk.