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What was one major danger of buying stock on margin? a. Buying stock on margin caused the price of stocks to fall. b. Buying stock on margin caused the price of stocks to rise. c. If the stock price rose, the buyer could not make a profit. d. If the stock price fell, the buyer still had to pay the balance owed.

Respuesta :

SAVAGEQUEEN04

What was one major danger of buying stock on margin?

Answer:

d) If the stock price fell, the buyer still had to pay the balance owed

Explanation:

The biggest risk from buying on margin is that you can lose much more money than you initially invested

dubeyshailja64

One major danger of buying stock on margin was If the stock price fell, the buyer still had to pay the balance owed. Thus the correct answer is D.

What is buying stock on margin?

Purchasing stocks on margin involves borrowing funds from the broker to buy stock shares. Investors can purchase more shares thanks to the margin loan.

If the stock price fell, the buyer still had to pay the balance owed as itr run the risk of losing far more cash than you put in.

Therefore, option D is appropriate.

Learn more about stocks, here:

brainly.com/question/14914290

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