Question

Stockholders began to panic sell their stocks because

a. All of these.
b. The government did not have any regulations in place that would have settled the market and prevented the panic.
c. They had borrowed money to buy their stocks.
d. Many were novices and did not understand what was happening.

Answer 1

Stockholders began to panic sell their stocks because a. All of these.

The stock market crash of 1929 was triggered by a number of factors, including:

• Lack of government regulation: The government did not have any regulations in place that would have settled the market and prevented the panic.

• Borrowing money to buy stocks: Many people had borrowed money to buy stocks and were forced to sell when the market started to decline.

• Lack of understanding: Many stockholders were novices and did not understand what was happening, adding to the panic selling.

All of these factors contributed to the stock market crash and the Great Depression that followed.