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

Question

A.
the mass withdrawals from banks

B.
the buying of stocks on margin

C.
the lack of industrial production

D.
the overregulation of the economy

Answer 1

B. the buying of stocks on margin

One of the major contributing factors to the stock market crash of 1929 was the practice of buying stocks on margin, which allowed investors to purchase stocks with borrowed money. This led to inflated stock prices and a speculative bubble that ultimately burst, contributing significantly to the crash.