asked 63.8k views
2 votes
During the 1920s, more people began to acquire shares of stock using

A.credit.
B.cash.
C.installments.
D.speculation.

2 Answers

5 votes
The answer is A. Credit
answered
User YSFKBDY
by
8.3k points
4 votes

The correct answer is A.

Becoming indebted with the aim of buying shares is called buying on margin. This was one of the most widespread practices in financial markets in years that preceeded the financial crash of 1929 and the derived Great Depression.

Buying on margin consists on purchasing an asset using leverage, this means, borrowing its face value (or a great share of it) from a bank or other financial institution.

answered
User Horejsek
by
6.9k points
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