Friday
October 24, 2014

Homework Help: investing 2-2

Posted by Johnny on Saturday, February 21, 2009 at 11:53pm.

If an individual buys stock on margin and its price rises,
the investor
A. must put up additional collateral.
B. must pay tax on the unrealized gain.
C. must pay interest on the borrowed funds.
D. may take delivery of the stock.

I think the answer is C because if you gain or lose, you still have to pay interest

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