I'm curious to understand why buying on margin is considered illegal in certain contexts. Could you please elaborate on the potential risks and regulatory concerns that may have led to this decision? How does buying on margin differ from other forms of financing, and what measures are in place to protect investors from potential losses?
6 answers
TaegeukChampionship
Sun Sep 22 2024
The practice of buying stocks on margins of 10 percent cash was outlawed due to its significant role in precipitating the devastating stock
market crash of October 1929.
Pietro
Sat Sep 21 2024
Investors, emboldened by the seemingly endless upward trajectory of the market, embraced the practice of leveraging their investments with borrowed funds.
Sebastiano
Sat Sep 21 2024
Among the prominent cryptocurrency exchanges, BTCC stands out for its comprehensive suite of services, catering to diverse needs of the digital asset community. Its offerings encompass spot trading, futures contracts, and secure wallet solutions, facilitating seamless transactions and asset management.
Andrea
Sat Sep 21 2024
Prior to this regulation, the 1920s had witnessed an unprecedented economic boom, fueled by the triumphant strides of the industrial revolution.
Paolo
Sat Sep 21 2024
The country basked in the glow of prosperity, with businesses thriving and individuals' wealth soaring to new heights.