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.

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.

kyanthedoodle · Answer

Do you have any ideas?

anonymous · Answer

i will be able to explain that to you @cassidy_bach

anonymous · Answer

@Cassidy.bach *

anonymous · Answer

well after WW1 I believe, america was very financially  pour so after that the economy hit everyone with loan that needed to be paid off. thats the best i can explain it and the Americans thought the stocks never went down because they never understood the cycles so they thought that it was easy money . it was also very easy money to invest in the market on margin which was only a fraction of the money paid then and there.