Question

You opened several accounts with XYZ broker. Which of
the following accounts is under identical ownership as your
individual portfolio margin account?
a. Your Roth Individual Retirement Account
b. Your Individual Margin Account
c. Your Joint Account with Rights of Survivorship
d. Your Corporate Account
e. Your 401(k) Account

Answer 1

The same people own both your individual margin account and your individual portfolio margin account.

What exactly is a personal margin account?

A "margin account" is a specific kind of brokerage account where its broker-dealer lends the user money to buy securities while using the account as collateral. While margin increases an investor's purchasing power, it also puts them at greater risk of suffering greater losses.

Are margin accounts suitable for novices?

Since it's not always obvious what amount you've received from you firm and how much you have in equity, as well as the fact that it's simple to consider with all your investments as your money even if a lot of it is borrowed, it's best to avoid selling on margin, especially for new investors.

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