Buying On the Margin
-borrowing money to buy stocks in hope that its value will go up and you can repay your loan and collect the excess.
Summary
Buying on the margin was largely used in the 1920's as a way to play the economy. When the markets went down, this led to a major downfall of the banks.
Buying on the margin was largely used in the 1920's as a way to play the economy. When the markets went down, this led to a major downfall of the banks.