What contributed to the overinflation of the stock market in the 1920s?

Question

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.