Question

What contributed to the overinflation of the stock market in the 1920s?
Question 11 options:

A)

A closed stock market that few people had access to

B)

People speculating in stock purchases

C)

Few people buying stocks

D)

Employers forcing employees to buy their stock

Answer 1

The primary factor that contributed to the overinflation of the stock market in the 1920s was:

**B) People speculating in stock purchases**

During this period, many investors engaged in speculative buying, often purchasing stocks on margin, which led to inflated stock prices and contributed to the eventual market crash in 1929.