Saturday, March 15, 2003

Investor 101

Margin is a loan from your broker to buy stocks. How much you can borrow is determined by how much is in your account.

Usually you can borrow up to 50 percent of the value of your marginable securities.

Say you want to buy $10,000 worth of a stock. You put up $5,000 and your broker puts up $5,000.

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