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:
Ghost Rider is a Marvel Character
Explanation:
He has appeared in marvel comics but no movies so far
Americas president is Joe Biden
They are the Redeemers, white democrats whom critics called Bourbon Democrats in Southern United States during the Reconstruction Era after the Civil War. They were mainly led by the rich landowners and businessmen and they ruled Southern politics in most areas from the 1870's to 1910.
The correct answer is D) news that a company is about to release a promising product.
<em>The reason that might convince an investor to buy stock or mutual funds is "news that a company is about to release a promising product."</em>
Smart investors are cautious when its time to invest their money but at the same time they are not afraid to invest in a risky scenario when the product seems good and the interest paid is attractive. Smart investors like to diversify its portfolio in order to gain more money from different sources and securing their positions. None of them are going to bet all their money in just one product. So the reason that might convince an investor to buy stock or mutual funds is "news that a company is about to release a promising product."
