When an investor borrows part of the investment cost it is known as
A) A short sale.
B) A fill or kill order.
C) A margin transaction.
D) A limit order.
E) Going long.

Question

Quizplus · Accepted Answer

When an investor borrows part of the investment cost, it is known as a margin transaction. Margin trading allows investors to leverage their positions by borrowing money from their broker to purchase securities. This increases the potential return on investment but also increases the risk of losses.

When an Investor Borrows Part of the Investment Cost It