which of the following most contributed to the stock market crash in 1929
There were several factors that contributed to the stock market crash of 1929, but some of the main ones include:
1. Speculation: Many investors were speculating in the stock market, buying stocks on margin (borrowed money) in the hopes of making a quick profit. This led to inflated stock prices and an eventual market collapse.
2. Overvaluation: Stock prices were much higher than the companies' actual earnings and assets justified, creating a bubble that eventually burst.
3. Economic conditions: The economy was already weakening in the late 1920s, with a downturn in agriculture and stagnating industrial production. The Great Depression exacerbated these issues, leading to the stock market crash.
4. Bank failures: Many banks had invested heavily in the stock market, and when the market crashed, these banks suffered significant losses. This led to a wave of bank failures, further exacerbating the economic downturn.
Overall, a combination of these factors contributed to the stock market crash of 1929, leading to the Great Depression.