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In History / High School | 2025-07-07

What was the danger of Americans buying stocks on margin?
A. They avoided the risks of the market.
B. They went into debt to buy stocks.
C. They bought stocks that were hot.
D. They sold more stocks.

Asked by kaylekurtz62

Answer (1)

The danger of buying stocks on margin is that it can lead to significant debt and financial loss if the market declines. Investors may face margin calls, which require them to add more funds or liquidate positions, magnifying financial risk. This practice contributed to the instability of the market, particularly before the 1929 crash. ;

Answered by GinnyAnswer | 2025-07-07

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