Question

Alex Carter wanted to invest in the stock market, but didn't have the entire $10,000 he needed to buy the shares of the company he wanted. Alex does have $7,000, so he decided to borrow the remainder of the stock's purchase price from his broker in order to be able to buy the stock he wanted. Alex is __________.

Answer 1

Answer:

Alex is buying margin

Explanation:

given data

needed to buy shares = $10,000

Alex have = $7000

to find out

Alex is

solution

we know that here alex have $7000 but he not entire $10,000

so as buying on margin is borrowing money by  broker in order to purchase stocks

and it is like loan from the brokerage so here margin trading allow the investor to buy more stocks than they able to normal

so we can say Alex is buying margin