What is the difference between hire purchase and on the margin and how is there a way of remembering it
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- Thread Starter
- 18-01-2016 17:48
- 18-01-2016 17:51
Hire purchase is the same as buying something with loaned money, very similar to what we do today. It's just buying something and paying for it over time.
Borrowing on the margin, however, was something quite unique to the Twenties. It involves borrowing a sum of money, buying stocks with it, paying the loan back with the money earned from the stocks and pocketing the profit.