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How did buying stocks on margin contribute to the stock market crash

2 Answers

6 votes

Answer:

another person can buy the stock market

Step-by-step explanation:

User Dalin Huang
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Buying stocks on margin is a risky investment choice. When you buy on margin, you are borrowing money from the brokerage house in order to leverage that money. When the stock market crashed, all of those margin loans became due immediately. That helped make the market crash worse.

User Ashelkov
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