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April 10, 2014 Raw: What was buying on “stocks on margin” in the 1920’s

April 10, 2014 Raw: What was buying on “stocks on margin” in the 1920’s. AIM 55 What was Coolidge Prosperity?. I. False Prosperity. Many people in the 1920s become rich from buying stocks . Most A m e r i c a n s believe the stock market is the way to make their fortune.

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April 10, 2014 Raw: What was buying on “stocks on margin” in the 1920’s

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  1. April 10, 2014 Raw: What was buying on “stocks on margin” in the 1920’s AIM 55 What was Coolidge Prosperity?

  2. I. False Prosperity • Many people in the 1920s become rich from buying stocks. • Most Americans believe the stock market is the way to make their fortune.

  3. I. The Stock Market Boom • Many investors buy on margin paying only a fraction of the stock prices. • Stock prices climb throughout the 1920’s. • Investors buy and borrow irresponsibly.

  4. II. Installment Buying • Buying products for a fraction of the price and paying the rest in Installments. • People buy up new products and fall into debt.

  5. When debt can’t be repaid businesses begin to fail. • Begins a terrible cycle. • Margin Buying of Stock. • Only have to pay 10% of stock price.

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