a stock with a high beta (a stock that moves in more pronounced ways than the S&P 500) may offer higher returns in a bull market than a low-beta stock. On the other hand, high-beta stocks are not preferable in bear markets like the one we’re in now. ...
In general, after signing a margin agreement, a brokerage customer can borrow up to 50% of the purchase price of marginable investments. When people say they are on 50% margin, it actually means they've purchased double their cash buying power in stocks. The 50% margin terminology can be ...
When you buy individual stocks, you pay commissions but they are usually very low – especially if you use a good online broker. You could easily trade thousands of shares for less than $10. You could of course buy any number of mutual funds without paying any commission at all –...
Call options grant you the right to control stock at a fraction of the full price. Fidelity Active Investor Key takeaways Like stocks, options are financial securities. There are 2 types of options: calls and puts. Calls grant you the right but not the obligation to buy stock. ...
E-Trade is a well-known investing platform where you can buy and sell stocks, bonds, mutual funds and other investment vehicles. If you want to do an E-Trade limit order, that is also easy with the company. You'll need to log in to your account and reque
With Wells Fargo Advisors, you can buy stocks on margin to extend the financial reach of your account. For more information, contact our investment professionals at 1-866-243-0931.
Municipal or corporate bonds are a great alternative for investors who want to create a reliable stream of income, particularly during their retirement years. Highly-rated bonds are by their nature very safe investments compared to almost any other alternative and especially compared to stocks. ...
Besides using a margin loan to buy more stock than investors have cash for in a brokerage account, there are other advantages. For instance, margin accounts offer faster and easier liquidity. “For most of our clients, we like to have a margin account even if they never buy stocks on marg...
assets without having to sell them. If a trader liquidates their existing stock for cash, they may generate a taxable event that could offset their potential investment gains. However, a trader who uses their existing stock as margin collateral will be able to trade without selling their stocks...
About Jeff Ostrowski Jeff Ostrowski is a veteran business journalist with over 20 years of experience covering real estate, business and the economy. He is a board member of the National Association of Real Estate Editors and has won awards for his housing coverage. He contributes housing and re...