Buying on Margin- Great Depression Cause

A period of economic hardship and social unrest.

A decade of cultural conservatism and isolationism.

A time of economic prosperity, cultural exuberance, and social change.

A post-war era marked by widespread depression and unemployment.

Purchasing stocks with cash only, to avoid debt.

Buying stocks by paying a small percentage of the price and borrowing the rest.

Investing in foreign markets to diversify one's portfolio.

Selling stocks at a higher price than they were bought for.

They have to payback the full amount of the stock (go into debt)

Companies were performing exceptionally well and generating massive profits.

The value was based on the high demand for stocks, rather than the actual worth of companies.

Government regulations artificially inflated stock prices.

Foreign investors were pouring large amounts of money into the American market.

Increased European dependence on American goods.

American factories reducing production due to high demand.

Many countries imposing tariffs on imports, leading to stockpiling of American goods.

A significant decrease in the popularity of playing the stock market.