Buying on Margin
- Taking Loans out from the bank
- Buying stocks with the loan's
Buying on Margin is when people would loan money from the bank, and use that money to trade stocks and gain more money. Once the market crashed, there was no way that all the people who had took out loans could repay the banks, thus forcing many banks to go bankrupt as well.
- Buying stocks with the loan's
Buying on Margin is when people would loan money from the bank, and use that money to trade stocks and gain more money. Once the market crashed, there was no way that all the people who had took out loans could repay the banks, thus forcing many banks to go bankrupt as well.