1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Llana [10]
3 years ago
7

How did the initially small slide in stock prices lead to the stock market crash?

History
1 answer:
faust18 [17]3 years ago
6 0
Most individual investors borrowed money to buy stocks and many of them also bought these stocks on margin, meaning they only actually paid for 80% - 90% of the stock they had had borrowed money to buy. They were called 'margin millionaires' - they actually truly owned very little of the stock. Threes investors became extremely vulnerable to lack of confidence in stock prices when the stock prices fell somewhat and we're the first to line up to sell their stocks. That in combination with the fact that many businesses had borrowed heavily to invest in their businesses, when a stock sell-off frenzy began businesses' stock value feel rapidly, banks couldn't be repaid, the banks collapsed and a great deal of people lost their life savings very rapidly.
You might be interested in
Is this right? Need help
Lelechka [254]

Answer: Yes

Explanation: The Native Americans did not have close ties with the US. We screwed them over (and still do) continuously. Our country doesn’t like them for several stupid reasons. So, yes, you are right. It is false

4 0
3 years ago
How did the unstable economy in the late 1920's contribute to the Great Depression?
Dimas [21]

Answer:

Production far outpaced demands, wealth was unevenly distributed, boom in stock market, prices were based on borrowed money and not real value.

Explanation:

4 0
4 years ago
Read 2 more answers
Why did some abolitionist criticize lincoln’s emancipation proclamation
Marianna [84]

Answer:

Because it lacked effect

Explanation:

The fairest criticism of the Proclamation is that it did not actually do what people today give it credit for...it did not free all enslaved people. So, critics saw that and fairly criticized it.

3 0
4 years ago
Read 2 more answers
Why did Americans call the War of 1812 the “Second War for Independence”?
xeze [42]

The Americans called the War of 1812 the "Second War for Independence", because the War of 1812 was against the British (which was their previous rulers). 1812 was when the British once again tried to take back the Colonies.


The US won once again, and it was known of the "SWfI" because it was against Britian (which was the strongest nation during that time


hope this helps


8 0
4 years ago
DESCRIBE THE DISPUTES THAT THE COLONISTS HAD WITH THE SUGAR ACT, THE STAMP ACT, AND THE TOWNSHEND ACTS
8_murik_8 [283]

Answer:

Explanation:

The disputes that the colonists had with these three acts were angry these colonist were being taxed unfairly which in the futur lead to revolutionary war.

4 0
3 years ago
Other questions:
  • Which idea is not part of Washington ‘s response
    11·2 answers
  • Explain how the slave codes operated in education and assembly
    6·1 answer
  • Who is the intended audience of "The Crisis"?
    8·1 answer
  • What was the first paper money printed by Congress called? A) dixie B) dollar C) continental D) pound
    9·2 answers
  • After the Askikaga Shoguns, Japan was divided into small territories headed by a shogun. True or False
    11·2 answers
  • How did George Washington play a role in forming the new federal government in 1787?
    7·1 answer
  • After WWI, instead of independence, what became of the Middle East
    6·1 answer
  • Which of these describes a result of the Proclamation of 1763?
    13·1 answer
  • By the mid-1700s, England controlled all the land between __________ in the north to __________ in the south.
    14·1 answer
  • What are the social, political, and economic causes and consequences of the Second Industrial Revolution
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!