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
Voted on by either house, but has no force of law
Makovka662 [10]
The answer is resolution.
4 0
3 years ago
Why was Nuremberg selected as the site for war crime trials after World War II?
zvonat [6]
The answer is D. 100%!! :)
6 0
3 years ago
Why did the United States change its plans to invade Japan?​
lisov135 [29]

Answer:

Unified command was decided to be necessary for the invasion, interservice rivalry over who it would be was so serious it derailed planning

6 0
2 years ago
What are the criticisms of Keynesian economics?
REY [17]
Ans: Criticisms of Keynesian Economics

Borrowing causes higher interest rates and financial crowding out. Keynesian economics advocated increasing a budget deficit in a recession. However, it is argued this causes crowding out. For a government to borrow m
5 0
3 years ago
Should cities located in or near deserts build solar and wind farms? Why or why not? Cite evidence from the text to support your
solniwko [45]

Answer:

yes

Explanation:

they should use solar farms because the desert is very sunny and spacious for solar farms, they also reuse energy, so it is good for the environment.

hope this helps a little bit!

3 0
3 years ago
Other questions:
  • Both the Shang Dynasty and the Xia Dynasty were located along what river?
    6·2 answers
  • Communication is now instant across the world, and has allowed businesses to operate more efficiently. What is the main cause fo
    8·1 answer
  • Which were not states formed from territory gained in the Louisiana Purchase? A. Arkansas, Iowa, Oklahoma B. North Dakota, South
    8·2 answers
  • The most important beliefs in Islam are the __________.
    11·2 answers
  • Read the excerpt below and answer the question.
    15·1 answer
  • Ano ang pamahalaan ​
    6·1 answer
  • rome became ine of the greatest civilizations in history. which of the following is true of the empire at its height.​
    15·1 answer
  • A final thought of the causes of WW2
    13·2 answers
  • How does Lindbergh characterize Europe?
    13·1 answer
  • Goodwin and Adams were separated by about one hundred years. Why might their opinions about Jackson be different? Goodwin clearl
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!