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Let me explain in simple terms again. Take the share price of Citigroup.
At the height of the boom, its market capitalization was over $250 billion. Today, it is less than $10 billion.
Let us say that you bought the shares when it was trading at $150. You also borrowed from the bank to purchase the shares. These shares will have to be pledged to the bank as security for the loan.
The shares are now trading a few dollars, say $5. There is just no way that you can repay the loan and or to obtain additional security to “top-up” the value of the security pledged to the bank. Where are you going to get the cash to buy more shares? Shares of other companies that you may own have also collapsed, and their value may not be sufficient to cover the difference.
You are dead meat !