What is dollar cost averaging?

What is dollar cost averaging?

What are the advantages of Dollar Cost Averaging?

What are the advantages of Dollar Cost Averaging?

What is investing on margin?

What is investing on margin?

What is day trading?

What is day trading?

What are options?

What are options?

What is an exchange traded fund?

What is an exchange traded fund?

Should I listen to the financial media?

Should I listen to the financial media?

What is an asset class?

What is an asset class?

Financial Planning

Financial Planning

Are there rules for handling finances when you are married?

Are there rules for handling finances when you are married?

What is the fastest way of doubling my money?

What is the fastest way of doubling my money?

What are the categories and types of U.S. Bonds?

What are the categories and types of U.S. Bonds?

What are the asset classes within appreciation?

What are the asset classes within appreciation?

What investments fall in the asset class "Hard Asset Stocks?"

What investments fall in the asset class "Hard Asset Stocks?"

How long should I plan on needing money during retirement?

How long should I plan on needing money during retirement?

What is a stock index?

What is a stock index?

How can I keep the expenses of investing as low as possible?

How can I keep the expenses of investing as low as possible?

How is a stock's price determined?

How is a stock's price determined?

 What is a mutual fund?

What is a mutual fund?

How do I start investing?

How do I start investing?

What different types of  accounts are there?

What different types of accounts are there?

What is dollar cost averaging?

What is dollar cost averaging?

Is bankruptcy ever the right option?

Is bankruptcy ever the right option?

Why does the stock market fluctuate?

Why does the stock market fluctuate?

In addition to finances, what issues are important for retirement planning?

In addition to finances, what issues are important for retirement planning?

The Importance of a Written Financial Plan for Retirement

The Importance of a Written Financial Plan for Retirement

Investing the Right Way During Retirement

Investing the Right Way During Retirement

Avoid CD Investment For Retirement

Avoid CD Investment For Retirement

Systemic Withdrawal Plan For Retirement Investments

Systemic Withdrawal Plan For Retirement Investments

Creating A Plan For Retirement

Creating A Plan For Retirement

Understanding Health Care Costs During Retirement

Understanding Health Care Costs During Retirement

Refinancing A Mortgage Before Retirement

Refinancing A Mortgage Before Retirement

Evaluate Income Sources Before Retirement

Evaluate Income Sources Before Retirement

Annuitizing Income

Annuitizing Income

Financial Strategy For A Down Economy

Financial Strategy For A Down Economy

Investment For Beginners

Investment For Beginners

Investment Planning

Investment Planning

View more ...

David John Marotta

President, Marotta Wealth Management, Inc., Marotta Wealth Management, Inc.

http://www.emarotta.com  

434-244-0000

David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com

What is investing on margin?

David Marotta talks about margin Investing.

This expert: 450,490 views
This series: 21,900 views

Download to Mobile Device

Print

Transcripts

Host: What is investing on margin?

David Marotta: Investing on margin means that you don t quite have enough money to buy all the things that you are buying. Back in the 1920 s and the 1930 s you used to be able to use your stocks as a loan to buy more stocks. So, you might buy a $100 worth of a stock and then you might only have 5% and you might borrow 95% of the value against your stocks. Now, you buy another $95 and then you use those stocks to buy another.

So, the problem is, with very little money you can get a huge portfolio. Now, in the 1920 s when the markets were going up that was great. In 1929 the whole thing fell apart and a lot of people ended up owing money on margin and they didn t have any stock value to end up supporting it. So, nowadays, the margin calls are listed at 50% and you have to have, you can only borrow about 50% of a value of your portfolio. If your portfolio goes below, if your margin goes above 50%, then they have a margin call and you have so much time that you need to sell something in order to satisfy that loan. We don t recommend investing on margin.

Financial Planning

Financial Planning

What is financial need and how is it determined?

What is financial need and how is it determined?

What is a financial aid award notice?

What is a financial aid award notice?

Why does my financial aid award notice say, "preliminary?"

Why does my financial aid award notice say, "preliminary?"

I have received my official financial aid award notice.  Now what?

I have received my official financial aid award notice. Now what?

Are all financial award notices the same and do they contain the same information?

Are all financial award notices the same and do they contain the same information?

What should I do if my financial aid is not enough?

What should I do if my financial aid is not enough?

Am I required to tell the financial aid office of any private scholarships I receive?

Am I required to tell the financial aid office of any private scholarships I receive?

Understanding College Financial Aid

Understanding College Financial Aid

What is financial aid?

What is financial aid?