During the 1920s, buying stock on credit was called
buying on speculation.
buying on a gamble.
buying on margin.
buying on margin call.

The correct answer is c) buying on margin.

Buying stocks on margin meant that individuals who wanted to buy a stock would put a small percentage of cash down and then would get a loan for the remaining amount of the stock. At some points during the 1920's, individuals could borrow up to 90% of the value of a stock. This method of buying on margin would come back to hurt banks, as the Stock Market Crash of 1929 dramatically reduced the prices of stocks resulting in defaults on thousands of payments/loans.

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