Buying on Margin
Notes:
- borrowing money to buy stock in the hope that it will go up and you can repay the loan and collect the difference
Summary: Buying on margin was when a person took a loan and invested in a stock, hoping it would go up. The problem was when the stock market crashed, the buyer and the broker lost money when the buyer couldn't pay it back.
Subjective question: Would the stock market crash be as severe if people could not buy on margin?
Quote:
Picture:
Cartoon
Video clip: