8
AssignmentMultiple Choice

Boom and Bust

Question 8 • [HSSUS] US History, Sem 1 (26-27)

Why did stock prices drop so quickly in 1929?

Answer
A
Companies were less valuable in October than they had been in the summer months.
B
People started investing in other things, such as real estate.
C
Investors panicked when prices fell, and they tried to sell their stocks as quickly as possible.

Explanation

When stock prices began to fall in 1929, many investors feared losing more money and rushed to sell. The large number of people selling at once pushed prices down even further, creating a rapid decline. Choice C describes this panic selling.

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