I’ve been thinking about what the future has in store for investors and I’d like 2010to use this post to help clarify my thinking. Essentially, I’d like to hone in on what 2010 portends for online finance. I’m looking for some broader trends, as well as some company-specific prognostication.
A margin account allows you to quickly and easily borrow money from your brokerage to purchase additional shares. It provides leverage for your account. It also allows you to do short selling. Interest is charged on any borrowed money and the SEC has very strict regulations on these accounts.