投资学全英文ppt2.pptVIP

Margin Trading Advantages Allows use of financial leverage Magnifies profits Disadvantages Magnifies losses Interest expense on margin loan Margin calls Margin Formulas Basic Margin Formula Example of Using Margin Table 2.3 The Effect of Margin Trading on Security Returns Margin Formulas (cont’d) Return on Invested Capital Example of Return on Invested Capital Basic Types of Securities Transactions Short Selling Investor sells securities they don’t own Investor borrows securities from broker Broker lends securities owned by other investors that are held in “street name” “