Notes
- Borrowing money to buy stock in the hope that it will go up and you can repay the loan and collect the difference
Summary
Buying on the margin was the process of trading money that you had borrowed. This was risky because you had to be trading in stocks that you knew were going to go up, otherwise you would lose the money without hope of finding the money again to repay.
Video
Picture
Political Cartoon
Quote
"When the market is just going up, up, and up, we all tend to be blind to the holes in the market. They're all papered over by the rise." -Ron Chernow
Subjunctive Question
Would the recession of been as bad if people had bought on the margin?