Question

In the 1920s stock market, what did it mean to 'buy on margin'?
(1 point)
Using personal savings to invest in the market.
Selling stocks immediately for a small profit.
Borrowing money from a bank to purchase stocks.
Purchasing stocks directly from a corporation.

Answer 1

Borrowing money from a bank to purchase stocks.

(“Buying on margin” means buying stocks with borrowed funds — typically from a broker — putting up only part of the purchase price.)