Stock prices had been going up and more people began buying stocks. "Buying on the margin" became a common practice in the 1920's. A buyer would put 10% down on the stock he/she purchased and then would borrow the other 90% from the stockbroker. When the stock sold then the stockbroker would be paid back, unless the stockbroker issued a "margin call" and wanted immediate payment. Based on the information in this paragraph and on your knowledge of the time period, which statement BEST explains why the Stock Market crashed in 1929?

Then try StudyFetch, the AI-powered platform that can answer your questions and teach you more about it!