In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers a had to make up the di

Question

Alina [70]

4 years ago

14

In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers a had to make up the di

fference. b lost ownership of the stock. c could no longer speculate on stock. d could no longer get credit.

Business

2 answers:

elixir [45] · Answer 1 · 2021-11-14T20:50:17+03:00

The right answer for the question that is being asked and shown above is that: "c could no longer speculate on stock." In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers <span>c could no longer speculate on stock.</span>

Helen [10] · Answer 2 · 2021-11-14T22:40:02+03:00

Answer:

The answer is: B) lost ownership of the stock.

Explanation:

In the 1920s traders borrowed on margin to buy stocks. This means that they put a little amount of money to secure the buying of the stock and then borrowed the rest to complete the purchase. The problem with this was that if the price of the stock fell, the trader would lose all the money. On the other hand if the value rises, then the trader could make a lot of money. This was a very risky business practice.