Related. 1  Essay on Dred Scott case 1920 Words | 8 Pages These people also made huge impacts in the world but none of this would have happened without the Pride and Courage of Dred Scott. 2  Dred Scott Decision Essay 1106 Words | 5 Pages John granted their request and they married.
Each stock has a 25 percent maintenance margin requirement. Mr. Jones has a $6,000 unmet maintenance margin call, so the broker sold out some of his securities. The broker chose to sell out GHI. Mr. Jones is in a very high tax bracket, so the sale results in a large tax bill for him.
In other words, brokers required investors to put in very little of their own money. Whereas today, the Federal Reserve 's margin requirement (under Regulation T) limits debt to 50 percent. During the 1920s leverage rates of up to 90 percent debt were not uncommon. When the stock market started to contract, many individuals received margin calls.