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The Roaring Twenties

Question 2 • Fall 24 US History B IC

Using credit to buy stock is called buying stock on

Answer
A
speculation.
B
margin.
C
exchange.

Explanation

Buying stock with borrowed money is called buying on margin. The investor borrows funds, usually from a broker, to purchase more stock than they could afford with cash alone. Speculation means taking a risk in hopes of making a profit, while an exchange is a marketplace where securities are traded.

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