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.

ciaraxcx · Answer

A lot of people had confidence in stocks at the time, because they were under the impression that they won't crash. So, I'd say B, because people believed that the stock market was well-regulated enough to not fall. This proved wrong after the stock market crash in 1929. I hope this helps and you can choose an answer off of this!