Chat or rant, adult content, spam, insulting other members, show more. Harm to minors, violence or threats, harassment or privacy invasion, impersonation or misrepresentation, fraud or phishing, show more. Why did the stock market boom in the s? I don't understand, why did the stock market boom in the s? Please give a detailed answer and include a link that I could follow for more research on 'the boom".

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The stock market boomed in the 20's because of easy loans. Almost anyone could get a margin loan and buy stock without actually owning it. They were all borrowing from the banks. Unlike the margin requirements today, people loaned large amounts that they did not have. The bankers got worried and started calling in the margin loans forcing people to sell or cover their positions.

This created a panic. History always repeats itself only today it stock market 1920s boom margin loans but debt in real estate, home equity and credit cards.

This Site Might Help You. Hello, in answer to this question, Why did the stock market boom in the s? It was a speculative bubble, such as the Holland tulip craze, the housing bubble, the stock market bubble of the dot-com era of the s. Speculators bid up the prices of assets to ridiculous levels, motivated payoff asian call option greed.

In the s, the average person got involved in buying stocks, and it was common to buy stocks with borrowed money.

The Stock Market Crash of |

The prevailing belief was that stock prices would short sell stocks singapore forever.

Any time you have a market where buyers greatly outnumber sellers, prices can be bid up to astronomical levels.

What's the Best Credit Card? Related Questions Help with stock market 1920s boom history homework?

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Why did the stock market boom develop in the s? Even though there was an economic boom during the s, what lead to the stock market crash in ? How did the boom times of the 's lead to the colapse of the stock market?

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BBC - Higher Bitesize History - Boom and bust : Revision, Page3

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