Vidyalelo
Commerce · Q70

Business and Commerce

Graduate and Post Graduate · Commerce · question 70

Q70

What is called to buying of shares by taking money from brokers?

A.
Margin trading
Answer
B.
Curb dealing
C.
Badla
D.
Forward

Answer: Option A

Solution

Answer: Option A
Solution:
Margin trading is called to buying of shares by taking money from brokers. Buying on margin means to borrow money from a broker (similar to a loan) to purchase stock. The investor can take position in the market by paying an initial margin of 50 per cent (your own money), while the broker could finance the balance 50 per cent.