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masya89 [10]
3 years ago
6

Why did banks start buying lots of stock in the 1920s?

History
2 answers:
Anuta_ua [19.1K]3 years ago
5 0
<span>They hoped that by selling hot stocks they could rebuild their cash reserves.</span>
anygoal [31]3 years ago
4 0
The prices of their stocks steadily increased through the 1920s, going on a wild ride upward between 1926 and October of 1929. Stock prices went far beyond realistic values and had little basis in the health of the companies. These skyrocketing stock prices signaled trouble for the U.S. economy. Hope this help
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