Which idea is most closely associated with the Red Scare of the 1920s?
2 answers:
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Declines in stock prices eliminated personal savings and left investors in debt best completes the table which has been attached below.
C. Declines in stock prices eliminated personal savings and left investors in debt.
<u>Explanation:</u>
At the point when a stock value falls then the organization must offer more portions of stock to raise a similar measure of continuous. So Investors regularly purchased stocks on margin. A margin account is an investment fund in which the dealer loans the speculator cash to purchase a bigger number of protections than what they could some way or another purchase with the parity in their record.
Margin obtaining, accessible at most financiers, enables speculators to get cash to purchase stock. The bought stock as a guarantee for the advance. Purchasing on margin is getting cash from a merchant to buy stock. Underlying speculation of in any event $2,000 is required (least edge). You can get up to half of the price tag of a stock (introductory margin).
