Before the stock market crash, people bought stock by putting up 10 percent of its value. This practice was called
A. buying on speculation.
B. buying on margin.
C. credit pricing.
D. open trading.
2006-10-22 01:03:49 · 16 answers · asked by Anonymous in Arts & Humanities ➔ History
It was called buying on margin (b). The practice is still used, although the margins are much more restrictive now--usually around 50-60%. In commodities trading, however, very low margins (5-10%) are still the norm.
You can also sell securities (for future delivery) on margin (usually this is done in commodities) to secure a price if you expect the value to fall. BTW, the commodities market is NOT for investors--it's a speculator's game and requires a lot of exppeertise.
2006-10-22 04:18:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
B. margin- which means on Credit without collateral. All stock trades are Speculation .
2006-10-22 01:10:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
OK Linda, I am going out on a Limb here and saying that it is B: buying it on Margin. I am making that decision not based on any actual knowledge mind you but because everyone above me but 1 have said that the answer is B. Now like I said I have no actual knowledge but the way I figure it If I am going to be wrong then Gosh Darnit I am going to be wrong with the majority!!! LOL Have a Great Day
2006-10-22 01:58:47 · answer #3 · answered by JohnRingold 4 · 0⤊ 0⤋
B. Buying on margin
2006-10-22 01:11:49 · answer #4 · answered by churchofone 1 · 0⤊ 0⤋
B. Buying on margin
2006-10-22 01:06:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It is called buying on margin
2006-10-22 01:06:31 · answer #6 · answered by rosemary H 3 · 0⤊ 0⤋
B. margin
If you like margins, try future trading....you'll get many "Margin calls"!
2006-10-22 01:09:03 · answer #7 · answered by FIREFIGHTER_101 2 · 0⤊ 0⤋
I think it was margin
2006-10-22 01:25:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
E. Yo mama.
2006-10-22 03:14:09 · answer #9 · answered by Doodler 1 · 0⤊ 0⤋
b
2006-10-22 01:09:30 · answer #10 · answered by jetboy861 3 · 0⤊ 0⤋