Notes
- Borrowing money to buy stock in the hope that it will go up and you can repay the loan and collect the difference
Video
Summary
People would borrow money from the bank to buy stock in the market hoping that the market would go up because they would later on have to pay back all the loan.
Audio
Pictures
Political Cartoon
Quotes
In the 1920s you could buy stocks on margin. You could put 10 percent down and borrow the rest against your stocks. -Ron Chernow
Subjunctive Question
Why was buying on margin a good idea or not a good idea?