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Answer -) D. paying a loan back for an asset only after profiting from a trade.
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When a person is buying on margin, it denotes to the notion that the person is investing with borrowed money. Therefore, the term "on margin" means paying the down payment on an asset and borrowing the balance.
What is "on margin"?
When a person buys something on margin, it means that the person is borrowing money from a broker to purchase a certain stock. It is taken as a form of loan from the broker, and this type of margin trading allows to buy more stock than one can normally do.
What is an asset?
Assets are certain possessions that human beings acquire which tends to provide a current, as well as future, potential economic benefit for those individuals. It is thereby owned by the individuals, catering to future welfare.
To learn more about Assets here:
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