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How did buying stocks on credit contribute to the Great Depression?
Wiki User
∙ 11y ago
When stock prices fell, people did not have the money to cover their losses.
Wiki User
∙ 11y ago
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Buying stocks on credit is called?
margin
Where can one go to learn about buying and selling?
Buying and selling is a very broad topic that likely refers to buying and selling stocks. One can learn about buying and selling stocks from many sources including Investopedia and About - Stocks.
Buying on margin was a method of buying stocks?
with mostly borrowed money
Where can one start buying direct stocks?
One can start buying direct stocks by using the company's direct stock purchase plan. With this plan, it will enable stocks to be directly purchased from the company.
The purchase of stocks and bonds is?
buying on margin
Buying stocks on credit is called?
margin
Witch key problem led to Great Depression?
The key problem which led to the Great Depression, was the stock market. Because many investors began to buy stocks on margin. Which technically meant that the investor was "buying on credit," or in other words buying with money they do not have.
How does buying on credit work?
"buying on credit" is basically borrowing money from banks/people, so you can buy luxury items. You use it, to invest into stocks.
In the 1920's many American consumers began to adopt the practice of buying goods on credit?
buying on credit was the "item" that lead to the great depression. * people started buying luxury items * people borrowed money to invest in stocks * thought they could repay the loan when they sold their stocl or profit * b/c of so much buying; people were making ALOT of money * stores sold LOTS of goods; that made value of stock rise * at some pojnt; people could no longer buy things b/c they had spent all their money into paying off their credit * inflamation started; that lead && started the great depression
What are three ways that the market can fail?
It can crash if people sell there stocks and yous to much credit and stop buying stock.
What is the best way to invest money?
through stocks, and bonds. buying land for example or even building up credit
Where can one go to learn about buying and selling?
Buying and selling is a very broad topic that likely refers to buying and selling stocks. One can learn about buying and selling stocks from many sources including Investopedia and About - Stocks.
Is buying gold better than buying stocks?
gold has never been worth $0. some stocks have.
Did the stock market crash begin the Great Depression?
Yes, the stock market crash did begin the great depression but it wasn't the only cause. The depression was also due to the tariffs/war debt policies, factories producing more than consumers demanded, farm sector crisis, easy credit, and unequal distribution of income. The stock market crash just tipped it all off.
Is there an extra fee for buying stocks online?
Buying stocks online may incur a small stockbroking fee as some companies charge for the buying/selling and trading of stocks. But there are some companies that do not charge for these services.
What are the advantages and the disadvantages of buying penny stocks?
The main advantage to buying penny stocks is that they are so cheap. One also has to consider the downside. The major disadvantage to penny stocks is that these stocks often fail.
Buying on margin was a method of buying stocks?
with mostly borrowed money
