Once the brokerage house, rather than the bank, became the locus for American savings, that money would find its way into the stock market, because the broker was someone with a much higher tolerance for risk than the banker.
Ron Chernow
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There were two qualities about the mutual funds of the 1920s that made them extremely speculative. One was that they were heavily leveraged. Two, mutual funds were allowed to invest in other mutual funds.
- Ron Chernow -
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In the 1920s you could buy stocks on margin. You could put 10 percent down and borrow the rest against your stocks.
- Ron Chernow