Use the cause and effect table to answer the question.
Cause Effect
Investors often bought
stocks “on margin.” ?
Which event best completes the table?
(1 point)
Individual stocks experienced relatively little change in price over time.
Government regulations led people to pull their money from the market.
Declines in stock prices eliminated personal savings and left investors in debt.
A booming stock market distributed wealth broadly across a majority of Americans.
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The best event that completes the table is:
Declines in stock prices eliminated personal savings and left investors in debt.
When investors buy stocks "on margin," they borrow money to purchase more stock than they can afford, so if stock prices decline, they can incur significant losses, leading to debt and financial ruin.
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