Buying On Margin Definition Great Depression Apr 2026

This excessive leverage allowed even modest investors to control large blocks of stock, but it created a fragile market that collapsed when prices began to fall.

In the context of the Great Depression, refers to the speculative practice of purchasing stocks by paying only a small fraction of the share's price—often as little as 10% —and borrowing the remaining 90% from a stockbroker or bank . buying on margin definition great depression

How did buying on margin contribute to the Great Depression? This excessive leverage allowed even modest investors to