The correct answer is<span>stock prices reflected the real value of companies.
Stocks didn't reflect the real value of the company because they had a much higher value than the company actually had. The companies weren't making profit yet were behaving as if everything was going smooth, so they started failing hard and by the time people realized they wouldn't get their money back, it was already too late.
The correct answer for 2 is </span><span>All of the above
Companies were failing because they couldn't make a profit so they couldn't pay banks back which meant that people would get fired. The high unemployment led to mass starvation since there were no jobs and no money to buy food. The banks lost all the money because they crashed when the companies started crashing.</span>