Question

Which of the following describes the
margin of safety? *​

Answer 1

Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales

Answer 2

Answer:

The margin of safety is an investing principle.

Explanation:

the margin of safety is a principle in which an investor purchases securities when the market goes down their intrinsic value.

when the price of a security is significantly low below the company's estimation and it's value then the difference that occurs is termed as the margin if safety.

In accountancy, it refers to the difference between the actual sales and broke-even sales.

it helps to know and identify how much a sale can decrease before the safe becomes totally unprofitable fir tge company.