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HELP HISTORY HW!!!!!

Explain what the Buy on Margin and Margin Call was during the great depressions and why is was important during the great depression

User Seifolahi
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Answer:

During the Great Depression, some people used a risky way to buy stocks called "buying on margin." It's like borrowing money to buy more stocks than you can actually afford. This worked well if the stock prices went up because you could make a lot of money. But if prices went down, you'd lose a lot, and that's what happened.

A "margin call" is like a warning. It happens when the value of your stocks falls a lot. If you can't put in more money to cover the losses, the people you borrowed from might force you to sell your stocks.

So, many folks in the Great Depression were borrowing a lot to buy stocks, and when the stock prices fell, they had to sell in a hurry. This made the whole stock market crash even more, and it was one big reason why the Great Depression got so bad.

Step-by-step explanation:

I hope this is okay!!

User Jiaah
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