THE ROARING 20S 1920 1929
AMERICAN ORGANIZED CRIME OF THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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giving out loans they knew would not be paid back
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speculating stocks to be worth more than they actually were
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buying stocks on credit
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not insuring the customers’ money
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Detailed explanation-1: -Speculation is the act of buying or selling assets that have an increased chance of significant losses. Speculation is common among investors who trade penny stocks and over-the-counter (OTC) investments. Speculation should be limited to ensure that long-term financial goals like retirement are not impacted.
Detailed explanation-2: -High inflation has historically correlated with lower returns on equities. Value stocks tends to perform better than growth stocks in high inflation periods, and growth stocks tend to perform better during low inflation.
Detailed explanation-3: -Speculation And Overleverage In The Great Depression Rampant speculation led to falsely high stock prices, and when the stock market began to tumble in the months leading up to the October 1929 crash, speculative investors couldn’t make their margin calls, and a massive sell-off began.
Detailed explanation-4: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.