popular holdings news image
Bob Saget!
this is for a history assignment so make it serious
Answer
-The Chinese Republic maintained a tenuous existence from 1912 until 1949. Although a constitution was adopted and a parliament convened in 1912, Yüan Shih-kâai never allowed these institutions to inhibit his personal control of the government. When the newly formed Kuomintang (Nationalist Party, or KMT), headed by Sun Yat-sen, attempted to limit Yüanâs power, first by parliamentary tactics and then by an unsuccessful revolution in 1913, Yüan responded by dismissing parliament, outlawing the Kuomintang (KMT), and ruling through his personal connections with provincial military leaders. Sun Yat-sen took refuge in Japan. Yüan, however, was forced by popular opposition to abandon his plans to restore the empire and install himself as emperor. He died in 1916, and political power passed to the provincial warlords for more than a decade. The central government retained a precarious and nearly fictional existence until 1927.
During World War I (1914-1918), Japan sought to gain a position of undisputed supremacy in China. In 1915 Japan presented China with the so-called Twenty-one Demands, the terms of which would have reduced China to a virtual Japanese protectorate. China yielded to a modified version of the demands, agreeing, among other concessions, to the transfer of the German holdings in Shandong to Japan. The belated entry of China into the war on the Allied side in 1917 was designed to gain a seat for China at the peace table and a new chance to check Japanese ambitions. China expected that the United States, according to the Open Door Policy, would offer its support. At Versailles, however, President Woodrow Wilson withdrew United States support of China on the Shandong issue when Japan withdrew its demands for a racial-equality clause in the League of Nations Covenant, a provision bitterly opposed in the United States because of the possibility of unlimited influx of labor from Asia. The indignant Chinese delegation refused to sign the Treaty of Versailles. China, however, later gained admission to the league on the basis of a separate peace treaty with Austria.
Chinese youth and intellectuals, who in the previous decade had looked increasingly to the West for models and ideals for the reform of China, were crushed by what they considered Wilsonâs betrayal at Versailles. When the news reached China, a mass anti-Japanese protest demonstration, the May Fourth Movement of 1919, erupted at Beijing University and swept through the country.
The Kuomintang and the Rise of the Communist Party
A period of scrutiny and reappraisal followed, from which two clear objectives emerged: to rid China of imperialism and to reestablish national unity. Disillusioned by the cynical self-interest of the Western imperialist powers, the Chinese became more and more interested in the revolutionary changes in Russia and in Marxist-Leninist thought. The Chinese Communist Party organized in Shanghai in 1921, numbering among its original members Mao Zedong. In 1923 Sun Yat-sen agreed to accept Soviet advice in reorganizing the crumbling Kuomintang and its feeble military forces. At the same time he agreed to admit Communists to Kuomintang membership. Sunâs basic ideology, the Three Principles of Nationalism, Democracy, and Socialism, were charged with the spirit of anti-imperialism and national unification. Despite Sunâs death in 1925, the rejuvenated Kuomintang, under the leadership of the young general Chiang Kai-shek, launched a military expedition from its base in Guangzhou in 1926. Chiang sought to reunify China under Kuomintang rule and rid the country of imperialists and warlords. Before the Kuomintang completed the nominal reunification of China early in 1928, however, Chiang conducted a bloody purge of the partyâs Communist membership, and from then on he relied upon support from the propertied classes and the foreign treaty powers.
-The Chinese Republic maintained a tenuous existence from 1912 until 1949. Although a constitution was adopted and a parliament convened in 1912, Yüan Shih-kâai never allowed these institutions to inhibit his personal control of the government. When the newly formed Kuomintang (Nationalist Party, or KMT), headed by Sun Yat-sen, attempted to limit Yüanâs power, first by parliamentary tactics and then by an unsuccessful revolution in 1913, Yüan responded by dismissing parliament, outlawing the Kuomintang (KMT), and ruling through his personal connections with provincial military leaders. Sun Yat-sen took refuge in Japan. Yüan, however, was forced by popular opposition to abandon his plans to restore the empire and install himself as emperor. He died in 1916, and political power passed to the provincial warlords for more than a decade. The central government retained a precarious and nearly fictional existence until 1927.
During World War I (1914-1918), Japan sought to gain a position of undisputed supremacy in China. In 1915 Japan presented China with the so-called Twenty-one Demands, the terms of which would have reduced China to a virtual Japanese protectorate. China yielded to a modified version of the demands, agreeing, among other concessions, to the transfer of the German holdings in Shandong to Japan. The belated entry of China into the war on the Allied side in 1917 was designed to gain a seat for China at the peace table and a new chance to check Japanese ambitions. China expected that the United States, according to the Open Door Policy, would offer its support. At Versailles, however, President Woodrow Wilson withdrew United States support of China on the Shandong issue when Japan withdrew its demands for a racial-equality clause in the League of Nations Covenant, a provision bitterly opposed in the United States because of the possibility of unlimited influx of labor from Asia. The indignant Chinese delegation refused to sign the Treaty of Versailles. China, however, later gained admission to the league on the basis of a separate peace treaty with Austria.
Chinese youth and intellectuals, who in the previous decade had looked increasingly to the West for models and ideals for the reform of China, were crushed by what they considered Wilsonâs betrayal at Versailles. When the news reached China, a mass anti-Japanese protest demonstration, the May Fourth Movement of 1919, erupted at Beijing University and swept through the country.
The Kuomintang and the Rise of the Communist Party
A period of scrutiny and reappraisal followed, from which two clear objectives emerged: to rid China of imperialism and to reestablish national unity. Disillusioned by the cynical self-interest of the Western imperialist powers, the Chinese became more and more interested in the revolutionary changes in Russia and in Marxist-Leninist thought. The Chinese Communist Party organized in Shanghai in 1921, numbering among its original members Mao Zedong. In 1923 Sun Yat-sen agreed to accept Soviet advice in reorganizing the crumbling Kuomintang and its feeble military forces. At the same time he agreed to admit Communists to Kuomintang membership. Sunâs basic ideology, the Three Principles of Nationalism, Democracy, and Socialism, were charged with the spirit of anti-imperialism and national unification. Despite Sunâs death in 1925, the rejuvenated Kuomintang, under the leadership of the young general Chiang Kai-shek, launched a military expedition from its base in Guangzhou in 1926. Chiang sought to reunify China under Kuomintang rule and rid the country of imperialists and warlords. Before the Kuomintang completed the nominal reunification of China early in 1928, however, Chiang conducted a bloody purge of the partyâs Communist membership, and from then on he relied upon support from the propertied classes and the foreign treaty powers.
how did buying stocks on margin contribute to the stock market crash?
Mahmoud
help me plzzzzzz
Answer
I am not sure it was a factor in the 2008 crash....but it certainly a factor in the 1929 crash.
When you buy on margin you are in effect borrowing money from your broker under the understanding that he can call in this loan at any time and you pay a daily interest payment on this loan.
Back in the roaring 20's the stock market was very active. Times were pretty good following WWI and a lot of investors relied heavily on using their margin account
Let us give you a scenaro...you have $50,000 in your brokerage account....invested in a variety of stocks....your broker gives you margin of another $50,000 that you can borrow on. This sounds great as to date you have not made a bad decision....so you buy another $50,000 worth of shares and happily pay the daily interest because you are scoring a lot of extra money.
This became epidemic in the 1920's lots and lots of people wanted the "easy money" (kinda sounds familiar eh?) so they opened margin accounts and used them to the max.
The one day there was bad news and stocks dropped...maybe there was a week of bad news and the brokers were nervous...they gave their clients 24 hours to pay back the money they owe on the margin....the people had no more money...they were fully invested +all in on the margin.
Suddenly they found out that the brokers had the right to sell their stocks without their permission. There was panic and prices were falling as people tried to sell their stocks to payback their loans. The the brokers stepped in....they started to sell the clients stock....not the poorly performing stocks....no,no....they sold off the best ones so they could get their money back as fast as possible....clients were wiped out by this action and window-jumping was a popular way to end-it-all.
That is why using margin foolishly can be very dangerous...I was shocked to see a daytrader in recent messages here who apparently maxed his holdings + margin on his account to day-trade. Very dangerous IMHO...a bad trade can wipe you out doing this.
I am not sure this happened in 2008 but I am sure some investors fell this way...
I am not sure it was a factor in the 2008 crash....but it certainly a factor in the 1929 crash.
When you buy on margin you are in effect borrowing money from your broker under the understanding that he can call in this loan at any time and you pay a daily interest payment on this loan.
Back in the roaring 20's the stock market was very active. Times were pretty good following WWI and a lot of investors relied heavily on using their margin account
Let us give you a scenaro...you have $50,000 in your brokerage account....invested in a variety of stocks....your broker gives you margin of another $50,000 that you can borrow on. This sounds great as to date you have not made a bad decision....so you buy another $50,000 worth of shares and happily pay the daily interest because you are scoring a lot of extra money.
This became epidemic in the 1920's lots and lots of people wanted the "easy money" (kinda sounds familiar eh?) so they opened margin accounts and used them to the max.
The one day there was bad news and stocks dropped...maybe there was a week of bad news and the brokers were nervous...they gave their clients 24 hours to pay back the money they owe on the margin....the people had no more money...they were fully invested +all in on the margin.
Suddenly they found out that the brokers had the right to sell their stocks without their permission. There was panic and prices were falling as people tried to sell their stocks to payback their loans. The the brokers stepped in....they started to sell the clients stock....not the poorly performing stocks....no,no....they sold off the best ones so they could get their money back as fast as possible....clients were wiped out by this action and window-jumping was a popular way to end-it-all.
That is why using margin foolishly can be very dangerous...I was shocked to see a daytrader in recent messages here who apparently maxed his holdings + margin on his account to day-trade. Very dangerous IMHO...a bad trade can wipe you out doing this.
I am not sure this happened in 2008 but I am sure some investors fell this way...
Powered by Yahoo! Answers
No comments:
Post a Comment