How did speculative investing weaken the stability of the stock market?

a. The flurry of investing artificially raised the price of stocks.

b. Conservative investors sold their stock due to the increase in risky investments.

c. When speculative investing increased, the real value of companies decreased.

d. The risky investments caused banks to stop loaning money to investors.

Question

Kadyn Pearson

History

11 July, 13:45

How did speculative investing weaken the stability of the stock market?

a. The flurry of investing artificially raised the price of stocks.

b. Conservative investors sold their stock due to the increase in risky investments.

c. When speculative investing increased, the real value of companies decreased.

d. The risky investments caused banks to stop loaning money to investors.

+4

Answers (1)

Know the Answer?

Sammy Dean · Answer 1

"a. The flurry of investing artificially raised the price of stocks" would be the best option, since this investing led to companies being incredibly over-priced, which led to the financial "bubble" that burst in the Crash of 1929.