For example, a $100 investment could purchase $1,000 worth of shares.
: The purchased shares themselves served as the security for the loan. margin buying definition 1920s
: 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 For example, a $100 investment could purchase $1,000