Question

define installment plan, speculation and buying on margin in a short paragraph.

Answer 1

An installment plan is a payment arrangement that lets a buyer spread the cost of a purchase into a series of scheduled payments (often with interest or fees) until the full price is paid. Speculation is buying assets primarily to profit from expected short-term price movements rather than to hold for income or long-term value, and it typically involves higher risk. Buying on margin means purchasing securities using borrowed money from a broker, with the investor’s existing holdings serving as collateral; this can amplify both gains and losses and may trigger a margin call if the value falls.