How did the practice of buying stocks on margin contribute to the problems americans faced after the crash of the stock market in 1929?.

Respuesta :

As stock sales made prices fall, brokers demanded loan repayments from investors who had bought on margin, which forced them to sell their stock, setting off further decline.

The primary contemporary stock trading was created in Amsterdam whilst the Dutch East India agency changed into the first publicly traded agency. to raise capital, the enterprise decided to promote inventory and pay dividends of the stocks to traders. Then in 1611, the Amsterdam stock change become created.

stock markets are venues in which shoppers and sellers meet to change equity stocks of public corporations. stock markets are components of a loose-marketplace economy due to the fact they allow democratized get entry to investors buying and selling and alternate capital. stock markets create efficient price discovery and green dealing.

shares provide traders the greatest ability for growth (capital appreciation) over the long haul. buyers willing to stick with shares over lengthy periods of time say 15 years, commonly had been rewarded with robust, effective returns.

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