Buying on the Margine
The act of investing with money that is borrowed from form a bank or stock broker.
Was used widely by most investors
Still used to an extent today
Blamed as one of the reasons of the crash
Was used widely by most investors
Still used to an extent today
Blamed as one of the reasons of the crash
Due to the economy being on the rise many stockbrokers found their fortune by buying on the margin. Basically the investor would borrow money from an outside sorce to invest in and when the money came back they would both be paid large amounts. However during the crash when everything went down any investor using this method lost all his money so perfectly that the sorce where it came from did not