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.
Ida Tarbell (1857 – 1944) pertained to the generation of journalists called muckrackers, who investigated and denounced corruption and unethical practices perpetrated by businesses and government officials during the Progressive Era (late 19th century and early 20th century) in the US.
She published <em>"The History of the Standard Oil Company</em>" in 1904 through which she set a precedent, and many others subsequently started to gather information and to denounce the abuses committed by companies with absolute market power (monopolies) or by trusts operating in olipolistic markets. The Sherman Antitrust Act had been recently passed in 1890 but firms had been able to freely limit competitiveness during the whole 19th century. Tarbell denounced the manner in which certain corporations gathered enormous fortunes by using anti-competitive practices, possible due to their dominant position in the markets, and also impeding others to participate on the profits of the industry.
Such monopolistic practices enlarged the inequality within the industry and also in the whole society where large fortunes started to appear while most people were humble factory workers who earned very modest salaries.
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Troika is the name given to a wagon driven by three horses aligned, thus, it served as illustration for the idea of a government with three leaders.
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Diego Rivera was a celebrated Mexican artist famous for his fresco murals that often depicted ... He sought to expose the working man to his art by creating large-scale images in public places.Diego Rivera had 146 paintings and murals. Rivera is generally acknowledged to be one of the most important artists of this century, and its most influential muralist.
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D. the red area. is the answer.
