Question:
Why was buying on margin made illegal during the Great Depression?
See Also
6 Best Ways To Double $5,000Is Margin Interest Tax Deductible?Margin Loans - FidelityWhat is Buying on Margin?The Great Depression:
Though there were many causes of the Great Depression, the event that triggered the beginning was a one day drop in the stock market of 16 percent that followed a week of losses that amounted to a 25 percent. The result was devastating for the people of the U.S. and many lost their life savings and the unemployment rate went from 3 percent to 25 percent.
Answer and Explanation:
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Buying on margins of 10 percent cash was made illegal because the practice contributed to the crash of the stock market in October of 1929. In the mid...
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