Which presented a problem in the stock market during the late 1920s ? a) buying on margin b) buying on credit c) buying automobile stock d) day trading

The correct answer is A) Buying on margin.

Buying on margin was a common way in which individuals bought stocks during the 1920s. Citizens had the chance to buy a stock by putting 10% down and borrowing the the 90% from a bank. This caused a huge problem, as when the stock market crashed the people who borrowed money from the banks didn’t have the means to pay the bank back for the loan.