what did it mean to buy stocks on margin?

Answer 1

It means your broker is lending you money to buy the stock, and is using your existing stock as collateral.

Answer 2

It means you borrow a portion of the money to buy the stock. I think the current margin limits are 50%.
I have $5000, I could buy $5000 of stock or if I am approved to borrow on margin, I could buy up to say $10,000 of stock, $5000 of my funds and $5000 from the broker. I have to pay interest on the $5000 and if the stock drops I have to meet a margin call. So if the stock drops 10%, I will have to make up that loss and pay $500.

Answer 3

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