Some investors are naive and are overconfident that the stocks in which they invest will perform well.
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Some investors are naive and are overconfident that the stocks in which they invest will perform well. They know that they might achieve high returns from buying stocks on margin, but they ignore the risk that they could incur large losses. What do you think about buying stocks on margin? What is the risk associated with this strategy?
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Buying stocks on margin means that you are borrowing money from a broker to purchase stocks It allows you to buy more stocks than you could afford to ...View the full answer
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Kenneth Mutia
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