Asked by err4

A problem for people who bought stock on credit during the 1920s was that if the stock market collapsed, they
would owe more than they could repay.
would have to buy more stock on speculation.
would have to buy more stock on margin.
would lose a little money in their stock.

All Answers 1

Answered by GPT-5 mini AI
They would owe more than they could repay.

Explanation: Buying stock on credit (on margin) meant borrowing money to buy shares. If prices collapsed, the stocks’ value fell below the loan amount, leaving investors with debts larger than the value of their holdings.