A transaction in which an investor borrows to buy additional securities using the securities themselves as collateral is called:
A) Leveraged buyout.
B) Buying on margin.
C) Short selling.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Buying on margin refers to the practice of borrowing money to purchase securities, using those securities as collateral for the loan. This allows investors to leverage their investment, potentially increasing their return on investment if the securities' value goes up.

A Transaction in Which an Investor Borrows to Buy Additional