Question

In the years before the stock market crash of 1929, the values of stock soared. Then, the value dropped and stagnated during and after the crash. What could the time before, up to and including the crash be described as:

1) A bull market followed by a bear market
2) A bear market followed by a bull market
3) Neither of these

Answer 1

The time before the stock market crash of 1929 was 1) a bull market followed by a bear market, where initially stock prices soared and then sharply declined and stagnated.

Step-by-step explanation:

The period before the stock market crash of 1929 was characterized by soaring stock values and can be described as a bull market.

1) A bull market is when the market is doing well and stock prices are moving upwards.

The stock market that followed, including the crash and stagnation, represents a bear market, where the market sees a general decline in stock values over a period of months or years.

This pattern of a bull market followed by a bear market is consistent with historical trends where periods of growth and speculation are often followed by downturns.