A problem for people who bought stock on credit during the 1920s was that if the stock market collapsed, they would owe more than they could repay. would have to buy more stock on speculation. would have to buy more stock on margin. would lose a little money in their stock.

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Denise Maldonado

16 December, 17:57

A problem for people who bought stock on credit during the 1920s was that if the stock market collapsed, they would owe more than they could repay. would have to buy more stock on speculation. would have to buy more stock on margin. would lose a little money in their stock.

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Friday · Answer 1

They would owe more than they could repay.

Buying on credit means that you pay a little amount upfront and the rest later, in this case when you made money on the stock market. However, the issue is that with the crash, there was no way to pay.