Which of the following accounts allows an investor to purchase additional securities by leveraging the value of the eligible shares to purchase more shares through a loan from the broker?
A) Cash account
B) Wrap account
C) Margin account
D) All of these accounts allow loans from the broker.

Question

Quizplus · Accepted Answer

A margin account allows investors to borrow money from their broker to purchase securities, using the securities as collateral for the loan. This enables the purchase of additional securities beyond what could be bought with the available cash balance.

Which of the Following Accounts Allows an Investor to Purchase