How did buying on margin impact the stock market

Question

Social Studies

Isabelle Finley

6 September, 10:50

How did buying on margin impact the stock market

+2

Answers (1)

Know the Answer?

Dangelo Curry · Answer 1

As the boom market continued, people were increasingly willing to buy stocks with borrowed money. The " buy now, pay later" method of credit was introduced to the stock market as " buying on margin." The deal was to put some of the money down, then pay for the rest of the shares with profits when the paper was sold.