What is meant by buying on margin? Give an example. Mr. Thomas Demo invested in a stock costing 20,000, to which was financed by 12,000 from him, and the remaining amount borrowed from a broker. What is the margin in thei transaction.

The total cost of the stock is \20,000$.

Mr. Thomas Demo financed \12,000$ from his own funds. This is the equity portion of the investment.

The margin is the percentage of the investment that the investor paid for with their own funds.

$\text{Margin} = \frac{\$12,000}{\$20,000} \times 100\%$

The margin in the transaction is $\boxed{60\%}$.