a problem for people who bought stock on credit during the 1920s was that if the stock market collapsed…
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.
Answer
Brief Explanations:
In the 1920s, many bought stocks on credit (margin - buying). When the stock market crashed, the value of stocks plummeted, and investors who had borrowed to buy stocks owed more than they could repay as the value of their collateral (stocks) was greatly reduced.
Answer:
They would owe more than they could repay.