Gregor: “Twenty-three percent off the value of all my shares in one day has apparently made the press photographers even more anxious to get close-up photographs of my dull face.”
Why is losing twenty-three percent off the value of shares a bad thing? In the stock market, investors profit when shares increase in value, and lose money when shares decrease in value. It can be as easy to make money as it is to lose money when investing in the market. The crash of 1929 attested to how volatile the stock market can be.
Most people during the 1920s had bought stocks “on margin”. Buyers would front a small percentage of what the stock was actually worth from brokers who would borrow money from the bank to officially buy the stock. In turn, the buyer would have to pay interest to the broker. If stock prices fell drastically, buyers worried that they would not be able to pay their brokers, so they would quickly sell their shares before stock prices fell even more.
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2011-2012 Season, Education @ Roundabout, Man and Boy, Upstage