Buying on credit is also called Buying on Margin
buying stock on margin is buying stock with money you dont have. in essence buying with credit. this is now illegal i believe as it was one of the culprits behind the great depression
Buying on Margin
A credit spread is when a person purchases some interest in a company and gets a discount on buying more of the same stock. A credit spread is used mostly when the stock is in a troubled company.
margin
Individuals who invest in a business by buying shares of stock are called stockholders or shareholders.
speculation
When stock prices fell, people did not have the money to cover their losses.
It can crash if people sell there stocks and yous to much credit and stop buying stock.
Buying on margin
Stock Market crash of 1939 , use of credit , dust bowl , buying on the margin , buying on speculation , bonus army , lynching , hoovervilles ,
Stock market crash due to buying on margin and overextention of credit to buy consumer goods.