Cause Effect
Investors often bought stocks “on margin.” ?
Which event best completes the table?
(1 point)
Responses
Individual stocks experienced relatively little change in price over time.
Individual stocks experienced relatively little change in price over time.
Government regulations led people to pull their money from the market.
Government regulations led people to pull their money from the market.
Declines in stock prices eliminated personal savings and left investors in debt.
Declines in stock prices eliminated personal savings and left investors in debt.
A booming stock market distributed wealth broadly across a majority of Americans.
A booming stock market distributed wealth broadly across a majority of Americans.
1 answer
The event that best completes the table is:
Declines in stock prices eliminated personal savings and left investors in debt.
This is because buying stocks "on margin" means that investors were borrowing money to buy more stocks than they could afford. When stock prices declined, many investors faced significant losses and could not repay their loans, leading to debt and the elimination of personal savings.
