Great Depression — Buying On Margin

If the stock price doubled to $2,000, you could sell it, pay back the $900 loan, and walk away with $1,100—nearly a on your initial $100 investment. This "leverage" turned modest savings into overnight fortunes, creating a feedback loop where rising prices attracted more margin buyers, pushing prices even higher. The Rise of the Speculative Bubble

A margin call occurs when the value of a stock drops below a certain point. To protect their loan, the broker demands that the investor immediately deposit more cash or sell the stock to cover the debt. buying on margin great depression

The 1920s, often called the "Roaring Twenties," was a decade defined by jazz, rapid industrialization, and an almost religious faith in the American stock market. For the first time in history, the average citizen felt the lure of Wall Street. However, this era of unprecedented prosperity was built on a fragile foundation: If the stock price doubled to $2,000, you