Question

What did not contribute to the collapse of the stock market in 1929?

A. Businessmen started companies called "investment trusts" that bought stock on credit.


B. Investors poured money into risky investments.


C. The real worth of companies held steady.


D. Investors bought stocks on margin.

Answer 1

Answer: C

Explanation: well, if the real worth ofqrkets held steady all the investments would be good and when the stock market fell, all the investments of people were worthless and many lost everything so this was the beginning of the great depression.

Answer 2

The correct answer is C. The real worth of companies held steady.

Step-by-step explanation:

The collapse of the stock market between October 24-29, 1929 was the worst stock market crash in the history of the United States. Fueled by heavy stock market speculation, there were several factors behind it: investors poured money into risky investments, many of which failed with the collapse of the stock market; other investors bought stocks on margin, that is, by borrowing money they didn't have but hoped to repay with their future earnings; and businessmen started companies called "investment trusts" that bought stock on credit - these investment trusts adding to the house of cards that the stock market had become. The only factor that did not contribute was the real worth of the companies holding steady - quite the opposite, many companies were severely overvalued as a result of rampant speculation, and with the stock market crash, their real worth plummeted as investors tried to get rid of stocks as fast as possible. Ultimately, the Stock Market Crash of 1929 is credited as the triggering even of the Great Depression of 1929.