Question \#8 of 15 Pyramiding is the use of borrowed money to finance the bulk of an investment. True False

Pyramiding, while it sounds like a fancy term for building layers of success, actually refers to a risky strategy in investing. It involves using margin or borrowed funds to increase the size of your investment by leveraging the gains from your current holdings. While it can amplify profits when the market is rising, it can also lead to significant losses if the market turns, making it essential for investors to tread carefully! In real-life scenarios, just think of those who went for the gold during the housing boom! Many used pyramiding strategies to buy multiple properties, banking on high appreciation. However, when the market crashed, those leveraged investments turned sour and resulted in financial turmoil for many. So, it's a thrilling yet dangerous rollercoaster ride in the investment world!