: The broker provided the rest of the funds, often charging interest rates between 14% and 19%.
: The purchased shares themselves served as the security for the loan. margin buying definition 1920s
: Investors could "control" large amounts of stock with very little capital. : The broker provided the rest of the
: If a stock rose in value, the investor kept the profit minus the loan and interest, leading to massive gains on their original cash investment. The Risks and The "Margin Call" Stock Market Crash of 1929 | Federal Reserve History margin buying definition 1920s