In the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers

Question

Social Studies

Makhi Lynch

11 December, 17:55

In the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers

+1

Answers (1)

Know the Answer?

Anaya Walsh · Answer 1

In the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers have to make up the difference.

When the stock dropped, basically the borrowers losing an amount of value of his assets. But since he bought the stock before the price was dropped, he had to make up the difference