notes
-Borrowing money to buy stock in the hope that it will go up
-You can repay the loan and collect the difference
-Led to stock market crash
-You can repay the loan and collect the difference
-Led to stock market crash
summary
Buying on margin was borrowing money from bank so you can buy stock and then pay it all back when it goes up. You could repay the loan and pick up the difference. This led to the stock market crash.
"Never invest emergency savings in the stock market" - Anomynos
What if there was more regulations for the stock market and the banks?