invstments
Storyboard Text
- "Basically, we can borrow money from the broker to buy more shares than we could afford with just our own funds. This way, we can amplify our gains."
- "Hey Mike, have you ever heard of buying on margin? I think it could really help us make more money in the stock market."
- "No, I've never heard of that. How does it work?"
- "I see. Well, let me explain the process to you. With a margin account, you can borrow money from us to buy more shares than you could afford with just your own funds. However, keep in mind that this also increases your risk."
- "We want to open a margin account. We've been reading about it and think it could help us make more money in the stock market."
- "Good afternoon, gentlemen. What brings you here today?"
- "Alright, let me check if you have enough funds in your margin account to cover the purchase."
- "We want to buy 100 shares of Amazon on margin."
- Tom and his friend Mike are sitting at a coffee shop discussing how to make more money in the stock market. Tom tells Mike that he has been reading about buying on margin and how it can increase their profits.
- "Wow, we made a really good profit on that margin trade. We couldn't have afforded to buy that many shares without borrowing money from the broker."
- "True, but that's the risk we took. It's important to have a plan in place and not overextend ourselves with too much borrowed money."
- "Yeah, but what if the stock had gone down instead? We would have lost a lot of money."
- Tom and Mike visit a brokerage firm to open a margin account. They meet with Mr. Johnson, a broker who explains the process to them.
- "Uh-oh, we got a margin call. We need to deposit more funds into our margin account or sell some shares to cover the losses."
- "I didn't realize the risk could be this high. We need to be more careful next time."
- Tom and Mike decide to make a margin trade and buy shares of a popular tech company. They discuss the details with Mr. Johnson.After verifying that they have enough funds in their account, Mr. Johnson helps them place the trade.
- "Agreed. Let's make sure we have a good understanding of how it works and the potential risks and rewards before we make any more margin trades."
- "Buying on margin can be a powerful tool for increasing our profits, but it's important to understand the risks involved and not overextend ourselves."
- "Yeah, we need to have a solid plan in place and be prepared for the possibility of losses. I think we should do some more research before making any more margin trades."
- A few weeks later, Tom and Mike check their portfolio and see that the stock they purchased on margin has gone up in price.
- The stock they purchased on margin starts to decline, and Tom and Mike receive a margin call from their broker.
- Tom and Mike reflect on their experience with buying on margin and the lessons they learned.
Over 30 Million Storyboards Created
No Downloads, No Credit Card, and No Login Needed to Try!
