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Q: Which best explains what weakened the stock market in the late 1920s?
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What was the character of the stock market in the late 1920s and what cause it to crash?

The Stock Market of the late 1920s was considered to be overvalued in comparison to the actual value of the member companies. The overvaluation lead to a bobble.


What was the character of the stock market in the late 1920s and what caused it to crash?

The stock market of the late 1920s was considered to be overvalued in comparison to the actual value of the member companies. The overvaluation lead to a bobble.


What caused major economic difficulties in the 1920s?

when the stock market crash


Accurately explains the difference between the stock market and the bond market?

Equity is bought and sold in the stock market while debt is bought and sold in the bond market.


Accurately explains the difference between the stock market and the commodity market?

Ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market.


Did the stock market had anything to do with the roaring twenties?

Yes because the period of economic boom and stock market bubble during the 1920s is often referred to as the Roaring Twenties.


Why was speculation in the stock market so popular in the 1920s?

Because it was believed to get people rich quick.


What explains the difference between the stock market and the commodity market?

Stock market, as the name explains deals with the stocks/shares of a company floated at a stock exchange.Commodity markets, deals with commodities such as Oil, Gold, Silver, Grain, Coffee, Cotton and so on.In both the markets, the stocks or commodities are traded at their respective exchanges.


Why were African-Americans particularly harmed when the stock market crashed?

On October 29, 1929, the United States stock market crashed in an event known as Black Tuesday. This began a chain of events that led to the Great Depression, a 10-year economic slump that affected all industrialized countries in the world. The 1920s had been a time of wealth and excess in the United States of America, and stock prices had risen to unprecedented levels. This encouraged many people to speculate that the market would continue to rise. Investors borrowed money to buy more stocks. As real estate values declined during the late 1920s, the stock market also weakened. When stock prices started to slide on October 29, people rushed to sell their stock and get out of the market, which drove prices down even further. This cycle led to more and more “panic selling,” until the stock market fell to its lowest point in history.


What was the new york institution in which continously rising prices and profits were fueled by speculation in the 1920s?

the stock market


Which of the following turned out to be a significant problem with the economy of the 1920s?

few people had the cash to invest in the stock market


Which best explains why some people invest their savings in the stock market and others put their savings in bank accounts?

Some people feel that the stock market is too risky for them