Which of the following was a cause of the 1929 stock market crash?
Stock prices had risen too high because of speculation.
Investors had not been allowed to borrow money to pay for stocks.
Too few people had been investing in the stock market.
Stock prices had been too tightly controlled by the government.

Question

Which of the following was a cause of the 1929 stock market crash? 
   Stock prices had risen too high because of speculation. 
 Investors had not been allowed to borrow money to pay for stocks. 
 Too few people had been investing in the stock market. 
 Stock prices had been too tightly controlled by the government.

anonymous · Answer

I think it's C. I am not sure though.

anonymous · Answer

thanks

anonymous · Answer

I'd go with "A" myself. Speculation dramatically inflated stock prices and encouraged a lot of people to dump everything into the stock market -- or even borrow money to buy even more stocks. It was an extremely foolish and dangerous thing for many investors to do, but a lot of people were convinced that the markets would continue to grow. 

The short answer is that when it finally showed signs of weakness, people began to panic and the market collapsed as they tried to pull out.