What was a major contributing factor to the stock market crash of 1929?

Question

A.
the overregulation of the economy

B.
the buying of stocks on credit

C.
the mass withdrawals from banks

D.
the lack of industrial production

Answer 1

B. the buying of stocks on credit

The stock market crash of 1929 was significantly influenced by the practice of buying stocks on margin, which meant that investors were borrowing money to purchase more stocks than they could afford. This led to unsustainable stock prices and ultimately contributed to the crash when confidence faltered.