One of the main factors which contributed to the Stock Market Crash in 1929, when the very loose regulations related to margin orders.
In financial terms, margin in an instrument which consists on depositing a collateral with a counterparty (generally the broker) to cover some of the credit risk that the depositor places to that counterparty.
In the 1920s, the mandatory requirements regarding margins were not very strict, and brokers asked investors to put in a small fraction of their own money. Leverage rates which measure the proportion of debt, reached 90% with a high frequency. Nowadays, the Federal Reserve has established the limit of 50%.
Back in 1929, when the stock market started to contract, many investors received margin calls. They had to hand in more money to their brokers, because the amounts required before were not enough and if not, their shares would be sold. Many people did not have the extra margin amounts required, their shares were sold and the market declined further. This generated more margin calls and more declines. This is why margin calls were one of the causes which triggered the Stock Market Crisis and, in turn, the Great Depression in 1929.
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Explanation:
The Columbian Exchange — the interchange of plants, animals, disease, and technology sparked by Columbus's voyages to the New World — marked a critical point in history.
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They had representation in Parliament but not in the colonies
Explanation:
Remember the saying, "No taxation without representation!" It was colonists saying that the taxes were unfair because they did not have anyone to represent or fight for them on Parliament.
Both the Southern and Middle Colonies had fertile farmlands, but only the Middle Colonies was able to provide trading opportunities, thanks to their coastal lowland and bay-provided harbors. Southern Colonies highly contributed to the rise of cash crops such as rice, tobacco, and indigo. Slaves cultivate huge tracts of land and plantations owned by wealthy aristocrats and large landowners. On the other hand, Middle Colonies were more suitable for growing grain and livestock, with its environment ideal for small to large farms. More diverse workforce also exists in the Middle Colonies, consisting of farmers, fisherman, and merchants. Another notable contrast between the two colonies is that, for the people of the South, life developed as rough and rural while people of the Middle countries are deeply connected to the Church and village community.
