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Tatiana [17]
3 years ago
6

What was "Buying on Margin" and how did it help lead to the Stock Market Crash of 1929?

History
1 answer:
NeX [460]3 years ago
8 0

Answer:

Buying on margin helped bring about the Great Depression because it helped to cause Black Tuesday when the stock market crashed. ... They could not repay their loans because the stock prices had not risen. When they could not repay their loans, they went broke. Because so many people could not repay loans, banks failed.

Explanation:

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As you mention, many West African states were already players in the slave trade but it wasn't until sugar exploded that there was a European demand for these slaves. Initially, European traders were most interested in extracting gold (this may have been due in part to mercantilism and similar economic theories at the time). Take for example the Gold Coast, which was originally named for its gold mines and gold trade, but by the 1800s hosted one of the biggest slave castles at Elmina (the mine).

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