Question

one problem with the stock market right before the crash was that people were buying \on margin.\ what does buying \on margin\ mean? a person buys stock in foreign countries. a person buys stock in high-risk companies. a person buys stock one day and plan to sell it the next. a person borrows money to buy stock.

Explanation:

Step1: Define buying on margin

Buying on margin means purchasing an asset (like stock) by borrowing money.

Step2: Analyze each option

• Option "A person borrows money to buy stock": This matches the definition of buying on margin.
• Option "A person buys stock one day and plan to sell it the next": This is short - term trading, not related to buying on margin.
• Option "A person buys stock in high - risk companies": High - risk company stock purchase is about company risk, not margin buying.
• Option "A person buys stock in foreign countries": Foreign stock purchase is about geographical location, not margin buying.

Answer:

A. A person borrows money to buy stock.