Question

Why did so many people invest in the stock market in the 1920s?

They felt it was safer to invest in stocks than in bank deposits.

They had faith in the stock market because it was well regulated.

They believed the majority of stocks were undervalued at that time.

They could buy stocks "on the margin," so they needed less initial capital.

Answer 1

In large part so many invested so heavily because they didn't understand the market and thought it would keep going up, they thought literally that the sky was the limit and it would just keep making them big money without ever coming down. Many people just saw the stock market as an easy way to make guaranteed money because they didn't understand the cycles it goes through.

It was also very easy to get money to invest in the market by buying stocks on margin which was basically buying with only a fraction of the money upfront. They never thought the stocks would drop below the amount still owed on them and for that reason the balloon payment (having to pay the balance all at once) wasn't something they worried about.

Answer 2

After WW1, Europe was devastated financially and psychologically. America, with the least involvement as a major power, was generally unscathed, and our economy boomed with loans that needed to be paid back by France and Britain, (the money they gave to us came from Germany which they practically brought to its demise until Hitler showed up, but that's another story). With all that money industry exploded and commercial investment skyrocketed, and our trucking industry got its first real start after manufacturing trucks to be used over seas. And oil discovery's were still going strong in the southwest. Also, New York became the new art capital of the world as European art was sent and bought by american collectors. William Randolph Hearst benefited the most form this art spree as is evident in his Hearst Castle. you should look it up, I've been there its really cool.

Answer 3

i think its A or B

Answer 4

lol nice info barrera

Answer 5

i have to get it right... i was thinkin B too!

Answer 6

i say B

Answer 7

K12 ???? anyway i would say b to :3

Answer 8

im not gonna say the answer just in case im wrong lol

Answer 9

its a probable answer but im not sure :3

Answer 10

no its plato homoeschool lol

Answer 11

it was wrong:((((

Answer 12

AW X3 oh nooooo what was it D: frick it was c wasent it

Answer 13

idk it didnt tell me the correct answer

Answer 14

oh

Answer 15

it might have been C because if you read the info i gave you it leads me to believing that