I spent the better part of my career at
(MER) as a vendor of
So what is leverage? Leverage comes in many forms. If you've ever bought a house and took out a mortgage, then you've used leverage. In this installment of the Finance Professor, I will shed some light on leverage from the point of view of buying or gaining exposure to stocks or stock indices.
Buying stock with borrowed funds is achieved through the extension of credit from a
The Margin RulesThere are many aspects to the margin rules that you must understand before buying securities on credit. I will discuss those rules in the context of stocks.