Question

in the 1920s, many people bought stock on margin, which means they - a. purchased a small piece of stock and left the remainder of the stock to be funded by the company itself. b. purchased whole stocks and then broke them up to sell to brokers and bankers. c. paid for a large percentage of the stock and borrowed the remaining amount from brokers and banks. d. paid for a small percentage of the stock and borrowed the remaining amount from brokers and banks.

Explanation:

Buying stock on margin means an investor pays a small percentage (the margin) of the stock - price and borrows the rest from brokers and banks. This was a common practice in the 1920s which contributed to the stock - market speculation and eventual crash.

Answer:

D. paid for a small percentage of the stock and borrowed the remaining amount from brokers and banks.