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Buying Stock on Margin Allows Investors to Increase the Potential

question 9

True/False

Buying stock on margin allows investors to increase the potential rate of return made on a stock investment.


Definitions:

Interest

The cost of borrowing money or the return on invested funds, usually expressed as an annual percentage rate.

Cash Flow

The comprehensive measure of funds circulating in and out of a business entity, chiefly in relation to its cash solvency.

Operating Cash Flows

Cash generated from the primary activities of a business, such as revenue from sales, minus operating expenses.

Total Assets

The sum of all assets owned by a company, including current and non-current assets, as recorded in the balance sheet.

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