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Question

Why did stock prices rise in 1929? Banks were giving out fewer loans. Goods were getting expensive. People were giving collateral to companies. Many investors were buying stocks on margin.

Answer

Many investors were buying stocks on margin.

  • Q: What is the stock market? A: The stock market is a place where publicly traded companies' stocks are bought and sold.
  • Q: What is the buying on margin? A: Buying on margin is borrowing money from a broker to purchase stock.
  • Q:What caused the rise of stock prices in 1929? A: The main reason for the rise of stock prices in 1929 was many investors buying stocks on margin.