​The Use of Margin Increases the Potential Percentage Return on an Investment

question 4

True/False

​The use of margin increases the potential percentage return on an investment in stock.

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Definitions:

Price

The amount of money expected, required, or given in payment for something.

Normal Good

A normal good is a type of good for which demand increases when income increases, and falls when income decreases, holding all other factors constant.

Income

Refers to the money received, especially on a regular basis, for work or through investments.

Normal Goods

Goods for which demand increases as consumer income rises, and falls when consumer income decreases, opposite to inferior goods.