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.
Answer: Congress must call a convention for proposing amendments upon application of the legislatures of two-thirds of the states
Explanation:
Congress must pass a proposed amendment by a two-thirds majority vote in both the Senate and the House of Representatives and send it to the states for ratification by a vote of the state legislatures.
Answer:
The Maryland Colony was the last of the 13 colonies to ratify the Articles of Confederation, which it did in 1781. The Maryland Colony became a state on April 28th, 1788 when it ratified the United States Constitution. Nicknames given to Maryland over the years include the Free State, and the Old Line State.
Explanation: none
