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What made Americans so willing to engage in stock market speculation in the 1920s?

People were in an optimistic mood, and they were willing to take a ...

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What made Americans so willing to engage in stock market speculation in the 1920s?

People were in an optimistic mood, and they were willing to take a risk.
Speculation was the lowest-risk way to invest in the stock market.
People felt they had little to lose, and there were few other options.
Speculation helped many low-income people move to the middle class.

Answer

the use of stock trusts.
People were investing in vehicles that were collateralized by underlying stocks and borrowing against that collateral.
when values started dipping people had to pay back the debt and thus sell more stock creating a vicious cycle

Virtual Teaching Assistant: Colleen R.
Question Level: Basic
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Upload Date: 5/31/2017

This 62 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 115 views.

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