6
AssignmentMultiple Choice

Roaring Economy to Great Depression

Question 6 • EAP-Virginia and US History B CR

Why did stock prices drop so quickly in 1929?

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

Explanation

When stock prices began to fall in 1929, many investors feared they would lose more money and rushed to sell their shares. That sudden increase in selling pushed prices down even faster. The best answer is “Investors panicked when stock prices fell and tried to sell as quickly as possible.”

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