During the 1920s, buying stock on credit was called buying on speculation. buying on a gamble. buying on margin. buying on margin call.

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09-12-2020
Mathematics

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During the 1920s, buying stock on credit was called buying on speculation. buying on a gamble. buying on margin. buying on margin call.

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queenjada72 queenjada72 · Answer 1 · 2020-12-09T07:20:49+01:00

queenjada72 queenjada72

09-12-2020

Explanation: Buying on margin is borrowing money from a broker in order to purchase stock.

I hope this helps!!

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chilljain33 chilljain33 · Answer 2 · 2022-07-22T14:16:17+02:00

During the 1920s, buying stock on credit was called buying on margin or margin trading. Hence, option C is correct.

What is a margin trading?

An act of buying shares or securities of a company without the actual need of having funds in the account, is known as margin trading. A credit facility is granted by the broker to the trader to do margin trading.

In case the trader generates a profit while buying on margin, he or she would get only an amount of the profit made by him or her over such trade. In case of losses, the balance amount became the liability of the trader.

Hence, option C states about margin trading.

Learn more about margin trading here:

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