History quiz

What were 3 causes of stock market crash?

1. Margin debt: Investors were buying stocks on margin, meaning they were borrowing money from their brokers to buy stocks. This allowed them to buy more stocks than they could afford, but it also meant they were more vulnerable to a market downturn.

2. Speculation: There was a lot of speculation in the stock market, with many investors buying stocks based on rumors and tips rather than on sound analysis of the companies.

3. Lack of regulation: The stock market was largely unregulated, which allowed for insider trading and other forms of market manipulation.

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