THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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you were paying cash for them
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you were buying them on credit
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you were selling your stocks
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you were buying them for 1/2 price
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Detailed explanation-1: -Buying stocks on margin means investors are borrowing money from their broker to purchase stock shares. The margin loan increases buying power, allowing investors to buy more shares than they would have been able to, using only their cash balance.
Detailed explanation-2: -Understanding Buying on Margin Monthly interest on the principal is charged to an investor’s brokerage account. Essentially, buying on margin implies that an individual is investing with borrowed money. Although there are benefits, the practice is thus risky for the investor with limited funds.
Detailed explanation-3: -As with any loan, when you buy securities on margin you have to pay back the money you borrow plus interest, which varies by brokerage firm and the amount of the loan. Margin interest rates are typically lower than those on credit cards and unsecured personal loans.
Detailed explanation-4: -Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you’d be able to normally. To trade on margin, you need a margin account.
Detailed explanation-5: -A Margin Credit indicates the amount due to you based on margin trade executions or an amount needed to meet margin requirements. On settlement date, this amount will be journaled to your Core if there is surplus in the Margin account.