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Which presented a problem in the stock market during the late 1920s ?

A) buying on margin
B) buying on credit
C) buying automobile stock
D) day trading

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The correct answer is A) Buying on margin.

Buying on margin was a common way in which individuals bought stocks during the 1920s. Citizens had the chance to buy a stock by putting 10% down and borrowing the the 90% from a bank. This caused a huge problem, as when the stock market crashed the people who borrowed money from the banks didn’t have the means to pay the bank back for the loan.
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