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Which of these terms best describe buying on margin during the 1920's?
Wiki User
∙ 12y ago
paying ten cents on the dollar for stock
paying ten cents on the dollar for stock
paying ten cents on the dollar for stock
paying ten cents on a dollar of stock
Wiki User
∙ 12y ago
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What was the motion picture capital of the world during the 1920s?
Hollywood!!!!
During the 1920s became the movie capital of the world.?
Hollywood
During the 1920s what became the movie capital of the world?
holly wood
English motion picture actor who was popular in the US during the 1920s?
Charlie Chaplin.
Did Hollywood become popular during the 1920s?
Hollywood, was the least populated town in America, until World War 1. It then soon lost everything rebuilding on the richest man in America. His name was Jacob Robert "Hollywood" Martin. It was popular during the 1920s.
1920s buying on credit?
Margin
Which term best describes buying on margin during the 1920s?
Paying ten cents on the dollar for stock
Industrial growth in the 1920s?
during the 1920s people bought on margin and factories boomed
What where two reason for poverty in the 1920s?
Stock market crash due to buying on margin and overextention of credit to buy consumer goods.
Buying on margin in the 1920s?
When investors could buy stocks for as little at 10% down-payment and then when the stock rose in price they could sell it and make a profit.
Two economically unsound business practices used by corporations during the 1920s?
Buying on margin because it would only work if the demand continued to rise. Stock because if the marked crashed then everyone involved in the bank would lose their money.
What is mass culture How did it change us?
Describe social changes and technological advances during the 1920s ... Popular culture in the 1920s was characterized by innovation in film, visual art.
What are the two factors that played a major role in the start of the Great Depression?
The first factor was a series of downturns in the economies of individual nations during the second half of the 1920s. The second factor was an international financial crisis involving the U.S. stock market.
Why did people buy stocks on the margin in the 1920s?
Same reason they do today....leverage. Buying say $1,000 of stock that you believe is going up...and it does say 20% earns you $200. On margin, the same $1,000 may get you 3 times as much stock, so the same events makes you $600 - or 60%, (minus a small interest and carrying expense). The numbers aren't quite right, but the theory is. The SEC won't allow you to borrow more than half the purchase price of the stock you're buying on margin. If you have a margin account with a $5000 maintenance margin (the amount of money you MUST leave in the account) and you have $15,000 in there, you have $10,000 of usable cash. You may then borrow up to $10,000 on margin. The reason for this rule is, of course, because buying stock on margin is one of the major factors in the Great Depression.
Why was buying stocks popular in the 1920s?
To get rich quicker
What did buying stock on margin mean in the 1920's?
"Buying on Margin" meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest. If the stock price dropped too low the broker could issue a "Margin Call" which means that the person has to repay all of the money that the broker put down. People often used this in the 1920s in order to buy more stock for less. i.e. Instead of buying 5 stock for $10, he could buy 50 stock for $10 and a loan from the broker. If you were to sell the stock, the broker would get his money back plus a portion of the profits.
Can it be inferred that the government's laissez-faire policies of the 1920s were detrimental to the economy?
YES. The US government's nonregulation of Wall Street allowed for rampant speculation and buying stocks on margin. These two acts, more than any others, led to the Great Depression.
