Alcopone

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Title: Alcopone

Essay Details:

Subject: American History

Author: Richard C

Date: January 12, 2014

Level: College

Grade: A

Length: 1 / 242

Essay text:

The price of stocks had little relationship to the dividends the stocks paid. Furthermore many investors began buying on margin or paying a small percentage of a stocks price as a down payment and borrowing the rest. With stockbrokers willing to lend buyers up to 75 perfect of a stock’s purchase price, buying on margin became the rule. This system worked as long as prices continued to rise, since investors could sell their inflated stocks to make a profit and pay off their debt. If stocks declined however, there was no way to pay off the loan. Although many Americans appeared prosperous during the 1920s in fact they were living beyond their means...

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