USA HISTORY

Detailed explanation-1: -In the 1920s, millions of Americans invested their savings or placed their money, in the rising stock market. The soaring market made many investors wealthy in a short period of time. Farmers, however, faced difficult times. The war had created a large demand for American crops.

Detailed explanation-2: -Throughout the 1920s a long boom took stock prices to peaks never before seen. From 1920 to 1929 stocks more than quadrupled in value. Many investors became convinced that stocks were a sure thing and borrowed heavily to invest more money in the market.

Detailed explanation-3: -Many people invested in the stock market in the 1920s because it was easier to do so than ever before. They could now buy ‘on margin, ’ or on credit, so people were able to purchase stocks that they would normally not have been able to buy if they had had to pay cash for them.

Detailed explanation-4: -The Roaring Twenties roared loudest and longest on the New York Stock Exchange. Share prices rose to unprecedented heights. The Dow Jones Industrial Average increased six-fold from sixty-three in August 1921 to 381 in September 1929.