Buying on the Margin
Borrowing money to buy stock in the hope that it will go up and you can repay the loan and collect the difference.
Buying on margin is borrowing money in order to purchase stock. Margin trading allows you to buy more stock than you would be allowed to normally in the market. To trade on margin, you need a margin account. This is different from a regular cash account, because you trade using the money in the account.
Many Americans were hoping on the making money wagon by borrowing money from banks and buying stocks in hopes to pay the banks and make some cash in the process. But when the stock market crash the banks were so in debt that they were forced to close.
Many Americans were hoping on the making money wagon by borrowing money from banks and buying stocks in hopes to pay the banks and make some cash in the process. But when the stock market crash the banks were so in debt that they were forced to close.
- Overproduction
- Stock Market
- Tariffs
- International Debt
- Weak European Economy