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Companies offered shares of their stock for sale to the public to generate capital. The public in pre-1929 era bought stock. When buying stocks on margin, one could buy stocks without the money to purchase them and demand led to high prices.
Wiki User
∙ 12y ago
Wiki User
∙ 11y agoBuying on margin allows people to leverage their cash to 2X the size, with a loan from their broker. Investors use margin to trade bigger positions, without having the money for those trades in hand. So margin allows for more money to flow into the stock market, causing individual stocks to rise.
But in order to trade with margin, you have to maintain a certain amount of leverage (cash) in your account. If a stock price falls, a broker may require you to put more cash in your account...if you don't have it, your stocks are sold. What is happening is that many investors can't come up with the cash and their stocks are sold automatically so the value of the initial loan is preserved. The avalanche starts as more and more investors are forced to sell when they don't have cash available.
Wiki User
∙ 11y agowhat possible function can speculations have appart from offering the speculator the chance to make a lot of money
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What is stock speculation?
A Stock market speculation means - Predicting the price of a market entity (A Stock for example) in future. If the speculation is positive, we buy. If our speculation is negative, we don't bye or sellbuy low sell high
What describes stock speculation?
speculation is a gamble that the price of the stock will increase and an investor will make money.
Which of the following describes stock speculation?
speculation is a gamble that the price of the stock will increase and an investor will make money.
What describes speculation?
speculation is a gamble that the price of the stock will increase and an investor will make money.
People who invest in the stock market will automatically make money?
No. Stock Market investors can make money as well as lose it. There is no guarantee that you will make money in the stock market
What conditions contributed to the end of Americas economic prosperity?
Just Because.
What is the stock market trend of today?
Which stock market are you asking about, please make your questions specific if you want us to be able to answer them.
Where can I find share market tips for the stock market?
Share market tips are tips about the stock market. You can help from your stock broker or even a lawyer. You would have to give them a percentage of what you earn but the make sure you get a lot of money.
Where did turtle wexler make millions?
In the stock market.
How do i make one million dollars?
stock market
What is the purpose of using stock trading simulation?
The purpose of using stock trading simulation is to better see how the stock market fluctuates. This is used in order to make sure any stock market crashes (like the Great Stock Market crash) never happens again.
Will people who invest in stock market always make money?
no
