Question 3 • Crowley Credit Recovery US History Studies Since 1877 A
Why did stock prices drop so quickly in 1929?Companies were less valuable in October than they had been in the summer months.People started investing in other things, such as real estate.Investors panicked when prices fell, and they tried to sell their stocks as quickly as possible.
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. That surge in selling drove prices down even faster. The correct choice is “Investors panicked when prices fell, and they tried to sell their stocks as quickly as possible.”
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