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What did rich people like Rockefeller do to try and improve people's confidence in the Stock Market?

A. They showed people how rich they were to inspire them.
B. They bought large amounts of stock to try and stop panic selling.
C. They made huge profits, and used them to buy libraries.

User Rahulbehl
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2 Answers

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Final answer:

Rich individuals like Rockefeller tried to improve people's confidence in the stock market by buying large amounts of stock during times of panic, aiming to stabilize the market and show their belief in its future. This approach helped to inspire confidence among smaller investors, though it also served the economic interests of the tycoons. The correct option is b.

Step-by-step explanation:

To understand how rich individuals like Rockefeller influenced public confidence in the stock market, one must consider the period leading up to the stock market crash of 1929. Wealthy investors like Rockefeller and J.P. Morgan used their fortunes to demonstrate a strong belief in the stock market, often by buying large amounts of stock during times of panic to stem the tide of selling and stabilize prices. This was their way of showing the public that they had confidence in the market's future, thereby inspiring smaller investors to hold onto their stocks or even to buy more.

Rather than simply showing off their wealth to inspire people as option A suggests or using their profits to buy libraries as option C mentions (which is a reference to Andrew Carnegie's philanthropic efforts), these tycoons actively intervened in the stock market. Their actions often served to re-instill investor confidence during market downturns. It's important to note, however, that these interventions were not always altruistic and typically served the tycoons' economic interests as well.

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Answer:

Bull market, people investing alot into stock market, people buyign share, ... Why did the stock market crash cause banks to fail? ... Artist and writters tried to capture the real life drama of the Depression in their work. ... he needed to do was to resotre people's confidence in the Banking system ... Want to learn this set quickly

User Jack Robson
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