What caused the stock market to collapse?
（a. businesses failed
b. stock prices were higher than the companies intial worth
c. more stocks were sold than there were stock holders）
Answer ：
The stock market crash in 1929 was due to people not investing in companies but speculating. The “on paper” value of the companies grew well beyond the actual worth of the shares.
Another problem that grew out of this was the buying on margin. Brokers would sell stock to individuals at a percentage of its cost. When the stocks began to make a correction and people began to sell and pull their money out of the market the investors/speculators could not pay the brokers back. Thus the crash.
Hope this helps.
lol… there is another guy with this same assignment floating around out there in YA. You two need to get together and compare notes. 
Posted: August 6th, 2010 under US Stock Market.
Tags: Stock market, stock market to collapse