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In the 1920's, the danger of buying stock on margin was that if the value of the stock dropped, borrowers _____. had to make up the difference. lost ownership of the stock. could no longer speculate on stock. could no longer get credit.

Kevin Sutter

in Business

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Ross Pratt on October 19, 2018

I think the answer is: I had to make up the difference.when you buy a stock on margin, you would be technically borrowing money from the broker to buy shares with current value of prices, and may receive in the future value of the shares. If the value of the stock increased in the future, you can cover the loan with a percentage of the profits and receive the rest. If the value of the fall, had to make up the difference.


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