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i mean does the stockbroker specifies the maturity when they lend funds to investor? thanks

2006-09-06 20:38:26 · 1 answers · asked by ? 1 in Business & Finance Other - Business & Finance

1 answers

Stocks don't actually "mature", as bonds do.

Buying stock on margin is usually done by investors who try to make a quick profit. They can hold it as long as they please but usually sell if it begins to drop. In that case they have to pay the broker the loss difference.
This was the biggest loss vehicle in the Great Depression. Investors couldn't pay the losses. Purchasing on margin was done with about 10% down. That was all changed after that.
If it rises they may sell for the profit or can hold it longer if they think it may continue to rise.

2006-09-06 20:51:16 · answer #1 · answered by ed 7 · 0 1

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