Why did people buy stock on margin?

People bought stock on margin to leverage their investments, allowing them to purchase more shares than they could with just their own cash. By borrowing money from a broker, investors hoped to amplify their potential returns if the stock prices rose. However, this strategy also increased the risk, as losses could be magnified if the stock prices fell, leading to margin calls and forced sales. Ultimately, margin trading was seen as a way to maximize profits in a rising market, but it also contributed to significant financial instability during downturns.