Financial
Chamberlain College Nursing
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FINANCIAL MARKETS FINAL EXAM REVIEW.
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---23January 20232022/2023A+
- FINANCIAL MARKETS FINAL EXAM REVIEW. 
FINANCIAL MARKETS FINAL EXAM REVIEW 
CHAPTER 8 – Margin and short selling 
 Margin trading 
o Trading on margin (choosing right security is crucial to this strategy) 
o Brokers must approve margin purchases 
o Leverage: using borrowed funds to buy securities (stocks, bonds, etc.) 
 Relates to margin 
o Margin: % of the investor ́s equity 
 Investor makes a $1000 investment of which $750 is his and the remaining $2 
are borrowed from his broker. 
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