Decade - 1920s

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

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2016-05-02 23:33:49
2016-05-02 23:33:49

Because it was believed to get people rich quick.

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A Stock market speculation means - Predicting the price of a market entity (A Stock for example) in future. If the speculation is positive, we buy. If our speculation is negative, we don't bye or sellbuy low sell high


the way you would buy on speculation was you would play the stock market


easy because the stock market let a lot of people take other peoples money so that is how the stock market crashed. ):



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.


A message expressing an opinion on incomplete evidence.This can also mean economic speculation - like playing the stock market.





Stock prices had risen too high because of speculation


underproduction, too many credit purchases, stock speculation


One factor that contributed to the collapse of the US economy at the end of the 1920's was the frenzy created when everyone started to invest in the stock market. This caused people to buy on speculation, but when the prices did not reflect what they thought they were going to be, the stock market crashed because the sellers of stock did not make a profit.


The stock market crash of 1929 put an end to the prosperity of the 1920s in the United States.


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


Stock speculation is analyzing a stock to try and see the percent that you would make off of it.


Buying stocks on margin and speculation. As stock prices fell, people sold stocks. This flooded the market with stocks no one wanted.


The stock market crashed in 1929 which was a cause of the Great Depression.


The major economic trend of the 1920s that helped caused the Great Depression was likely the unequal distribution of wealth. Another factor was over speculation in the stock market.


The most popular belief of the cause of the Great Depression is the stock market crash of 1929. Economist still debate about the other causes. Excess speculation in the stock markets added to the causes of the depression.


There was over speculation in the Stock Market, which was not regulated. Many Americans purchased stock on credit. This was known as margin buying. Banks were permitted to speculate in land and the stock market with little government regulations. There was little, if any, government regulation of the stock market. Any company could claim their stock was worth so much and there was no way to check the validity of the worth of the stock.


speculation is a gamble that the price of the stock will increase and an investor will make money.



The Stock Market Crash of 1929 signaled the beginning of the Great Depression, it did not cause it. There was over speculation in the Stock Market, which was not regulated.Many Americans purchased stock on credit. This was known as margin buying. Inflated stocks indicated that not all companies listed on the Stock Exchange were healthy and economically sound.


Speculation buying is investing in short term investments and hoping to earn money on market fluctuations. It is different than buying stock in a company based on the company's value.



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