a literate public
c.
a healthy economy
b.
an elite ruling class
d.
active citizen participation
lost ownership of the stock.
could no longer speculate on stock.
could no longer get credit.
In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped the borrowers had to make up the difference, so the correct option is (a).
In the 1920s, the world was just coping with WW1, the economy was in a major slowdown. The demand was soaring High and the supply was not that much as a result prices increased and due to war United was in a horrifying condition.
The biggest risk of buying a stock was that you could loose all the money that you had initially invested. There was a major decline of 50%, and rest was all eaten up by the banks. Which resulted in the loss of 100%.
Hence, In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped the borrowers had to make up the difference, so the correct option is (a).
To know more about buying stocks in the 1920s, visit here:
#SPJ5