If david borrows money to buy stocks, he is using a. long selling b. short selling c. leverage d. share dilution

The correct answer is C, Leverage.

Explanation:

In simple words, leverage is to borrow money in hope of getting bigger profits. Leverage is basically borrowing of money and use it to make bigger profits than the interest that you would likely to pay on the borrowed money. The concept is leverage is widely used in foreign exchange market where brokers give the facility of borrowing money to the investors in order to realize big profits by paying a little amount of interest. Also investors prefer the brokers who give good leverage ratios in accordance with their investment.

answer; blank(1); /// whitelisting; blank(2); // blacklisting;

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