Question

In the late 1920s, which of the following methods allowed investors to purchase stock at a fraction of its price and borrow the rest from the brokerage firm?

a. buying on debt
b. buying on futures
c. buying on a bear market
d. buying on margin

Answer 1

The answer is D. Buying on Margin

Buying on margin stock is a purchase of stocks by paying the stock margin and borrowing the balance from a Bank or broker. Before buying on margin, the investors back then need to open a margin account from the broker