In the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers

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Romeo Harmon

Social Studies

15 September, 02:39

In the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers

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Megan Bean · Answer 1

In the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers have to make up the difference.

When the stock dropped, basically the borrowers losing an amount of value of his assets. But since he bought the stock before the price was dropped, he had to make up the difference