1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VikaD [51]
3 years ago
13

Why was stocked bar on margin considered a risky investment

History
1 answer:
vitfil [10]3 years ago
6 0

<u>The right answer is:</u>  

A. Investors purchased the stocks with little cash down, if the price dropped the investor had to repay the loan.  

 

<u>Explanation: </u>

<em>Buying on margin is when you take out a loan to buy a stock, this process is also called leveraging your position, it basically means having a collateral.  </em>

<em> </em>

<em>When you buy on margin the stocks you buy are kept as collateral until you pay off the loan that makes them extremely risky.</em>

You might be interested in
Which of the following is NOT part of the Mongol Empire legacy?
masya89 [10]

Answer: B. Spread of the bubonic plague.

Explanation:

The spread of the Bubonic Plague or the Black Death has nothing to do with the Mongols. Scientists speculate that the first wave of the disease arrived in Europe by sea trade routes from Asia to Italy. Italy has been a center of European trade for a long time, and the diseases were transmitted to the mainland by infected ship rats. The plague ravaged Europe on several occasions, and in the first wave, half of the European population died as a result of the infection.

7 0
3 years ago
What force would dictate economic decisions in a Marxist economy?
melisa1 [442]

Answer:

A) Government planning to command the economy

Explanation:

Correct Answer on E2020

7 0
3 years ago
Read 2 more answers
Why did journalists call the Alaska purchase of 1867 “Seward’s Folly”?
Naily [24]
The imagined Alaska basically as a whole lot of land that is good for nothing. Although he got a good price in comparison, Alaska is huge and cost a lot of money. Just imagine what you think of the Arctic, then having the US pay one trillion dollars for it. Not great.
3 0
3 years ago
Read 2 more answers
Benjamin Rush is sometimes referred to as the "Father of American Medicine", why?
lina2011 [118]

Answer: He promoted public health by advocating clean environment and stressing the importance of personal and military hygiene. His study of mental disorder made him one of the founders of American psychiatry. In 1965 the American Psychiatric Association recognized Rush as the "father of American psychiatry".

Explanation:

3 0
3 years ago
How did Franklin D. Roosevelt's election as president change the way
xxMikexx [17]

<u>Rather than eliminating services and cutting spending, it increased social welfare programs</u> changing the way the U.S.government responded to the Great Depression.

<h3>What is Great Depression?</h3>

After Franklin Roosevelt was elected president, the U.S. government responded to the Great Depression differently, strengthening social welfare programs rather than reducing services and spending.

The American government decided to spend more money on Great Depression rather than put it away. In order to increase the likelihood of a rapid recovery, Roosevelt needed to stimulate the economy. After the market crash, Roosevelt made an effort to regain the public's trust in the banking sector. To promote exports, he devalued the currency.

To learn more about Great Depression with the given link

brainly.com/question/17642418

#SPJ13

Question:

How did Franklin Roosevelt’s election as president change the way the U.S. government responded to the Great Depression?

A. Rather than initiating public works projects, it relied on the free market to create jobs.

B. It increased tariffs to prevent Americans from purchasing goods from outside the country.

C. Rather than eliminating services and cutting spending, it increased social welfare programs.

D. It shifted from Keynesian economic policy to simple supply-and-demand economic principles.

7 0
1 year ago
Other questions:
  • Which of the following is a value shared by Puritans?
    14·2 answers
  • Which of the following inventions was predicted by science-fiction writers?
    5·2 answers
  • What was the role of the Committees of Correspondence which formed in the years before the American Revolution?
    7·2 answers
  • The original purpose of the Constitutional Convention was to:
    14·1 answer
  • What did the collapse of communism lead to increased mortality in eastern europe
    5·1 answer
  • What were the main issues in Selma according to the documentary? What caused the confrontations between the local law enforcemen
    14·1 answer
  • How were the conquistador able to establish their overseas empire
    8·1 answer
  • How did the Church gain power in the Middle Ages?
    5·2 answers
  • In april of 2013 a major terrorist attack killed 3 people and injurd over 250 more when two bombs exploded at which american eve
    6·1 answer
  • Which of the following did NOT dominate life in Latin America?
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!