What was the major cause of the stock market cash of 1929?

Answer 1

The major cause of the Stock Market crash of 1929 was a combination of speculative investments and excessive borrowing, leading to an unsustainable rise in stock prices. Many investors believed the market would continue to rise indefinitely, resulting in rampant speculation. When confidence faltered, particularly in late October 1929, a massive sell-off occurred, leading to a dramatic decline in stock values and triggering a broader economic downturn that contributed to the Great Depression. Additionally, underlying economic weaknesses, such as overproduction and reduced consumer spending, exacerbated the crisis.