THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tariffs
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overproduction
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stock market
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underconsumption
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Detailed explanation-1: -Key Takeaways. When a stock tumbles and an investor loses money, the money doesn’t get redistributed to someone else. Essentially, it has disappeared into thin air, reflecting dwindling investor interest and a decline in investor perception of the stock.
Detailed explanation-2: -Sometimes, however, the economy turns or an asset bubble pops-in which case, markets crash. Investors who experience a crash can lose money if they sell their positions, instead of waiting it out for a rise. Those who have purchased stock on margin may be forced to liquidate at a loss due to margin calls.
Detailed explanation-3: -Yes, you can lose any amount of money invested in stocks. A company can lose all its value, which will likely translate into a declining stock price. Stock prices also fluctuate depending on the supply and demand of the stock. If a stock drops to zero, you can lose all the money you’ve invested.