Question

in the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers

• had to make up the difference.
• lost ownership of the stock.
• could no longer speculate on stock.
• could no longer get credit.

Explanation:

Buying stock on margin in the 1920s meant borrowing funds to purchase stocks. If the stock's value dropped, the borrower's equity in the stock fell below the required margin level. This forced them to deposit more money or securities to cover the shortfall, i.e., make up the difference.

Answer:

A. had to make up the difference.