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Overall instructor remarks: Buying on margin means borrowing money from a broker to purchase stocks....

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Overall instructor remarks: Buying on margin means borrowing money from a broker to purchase stocks. So the margin account will increase your purchasing power because it allows you to buy with someone else's money. Therefore, it gives higher profit, if the price increased, but also higher loss and risk, if the price decreased, compared to if you bought the stocks with your own money od Dana purchased 300 shares of SABIC on margin at a price of SR100. Suppose the price has increased to SR120, what is the effect of the margin purchase to her profit (los) compared if she purchased the stocks by cathom here own money? (Explaini (No calculation are needed)

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