Buying on Margin. What is buying a stock on margin? What may happen if the value of the stock bought on margin declines? What are the advantages to investors and brokerage firms when stocks are bought on margin? When buying a stock on margin, an investor borrows a portion of the funds to buy the stock from: (Select the best answer below.) O any willing lender O B. the brokerage firm. OC. the Federal Reserve OD. a commercial bank if the value of the stock bought on margin declines: (Select the best answer below) A. a higher retum is realized since the cash investment was less than the total price of the stock B. tho brokerage firmloses C. the investor may get a margin call from the brokerage firm to put additional cash in his account to back the loan OD the loss is limited to the margin paid. Margin saten benefit the brokerage firm because: (Select the best answer below) OA stock prices usually rise OB. the investment is less than the price of the stock they can interest D. stock prices have been relatively steady