>>70677756Margin trading means people can buy stock with borrowed money. In principle it means you can bring in more investors by having them borrow money from a broker to buy your stock, which should be a good thing, but it also sends the message that there is a very real concern that your current investors may be considering jumping ship and selling off their stock in turn.
Margin trading usually ends up with a very short term bump in stock value, followed by a hard drop and a bunch of people jumping off of buildings.
