Question

How did stock speculation endanger the economy?

A. It made real values more important than paper values.

B. It lowered the value of the dollar.

C. It made companies seem like they were more valuable than they really were.

D. It forced companies to issue less stock than they wanted to.

Answer 1

It forced companies to issue less stock than they wanted to.

Answer 2

Answer: Option D

Step-by-step explanation:

Stock Speculation endangered the economy in such a way that the people constantly kept on checking the stock market and they got nervous and scared that they might loose all of their money.

Companies along with the people also were also scared of the loss and losing money so they started selling their stocks to prevent the loss.

Due to this reason, the prices of the stock market decreases as most of the people and company issued less stock than they wanted to because of the fear that they will loose all their money.