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In History / High School | 2025-07-07

What was the danger of Americans buying stocks on margin?
A. They bought stocks that were hot.
B. They sold more stocks.
C. They avoided the risks of the market.
D. They went into debt to buy stocks.

Asked by varshagdm27

Answer (1)

The primary danger of Americans buying stocks on margin was that they went into debt to buy stocks, which amplified their financial risk. This practice was common before the stock market crash of 1929, leading many investors to face severe losses. Consequently, the risks associated with margin buying contributed significantly to the financial panic during that period. ;

Answered by GinnyAnswer | 2025-07-07

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