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The economy was booming (roaring 20's), over-speculation was a common occurrence, as the market was growing and banks we willing to give out loans to almost anyone...

A great way to make money is to buy a large sum of stock on credit and allow the stock dividends to quickly pay off that credit (as long as no stock marketcrash occurs, AKA 1929)

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Q: In 1920 why did people continue to buy stocks?
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How do you become a trader?

trade stocks! buy low sell high . but dont be greedy ,you will lose . take a little at a time buy stocks that make sense , like AAP for instance ,people cant afford to buy new cars now , just fix old ones . this means profit for auto parts industry .


How can the Great Depression be traced to American investment in the stock market?

Investors borrowed money to buy rising stocks, but could not pay it back once the stock prices fell.


What was an obvious defect in the US banking system that was exposed during the Great Depression?

Ironically, the failure was caused in part by success. The economy was roaring in the 1920's, and the stock market was booming. The market was so attractive, in fact, that everyone wanted in, whether they had the money available or not. People and companies borrowed money to buy stocks or bought them on credit. Many stocks were bough on margin, or for a faction of the price, the resold at a profit, without the full purchase price of the stock ever having been pain. This practice led to risky investments and speculations. When the market began to fall in September 1929, nervous investors began to sell their stocks. In October, the panic spread, everyone tried to dump stocks, and the market collapsed.Thus began 'The Great Depression.'


How much would you get for books from 1920?

To read, from a library. To buy second hand or an antique book seller.


Why did the stock market crash in 2008?

The whole "growth" of the economy for many years had been based on phony loans given out to increase home ownership. These loans were given to people who couldn't afford a house (so the end result was already predetermined). People used this "fake" wealth to improve their houses, buy things, and bid up stocks for many years. When credit finally ran out the system collapsed and stocks adjusted to the fact that the inflated values were not real.

Related questions

Where could people buy and sell stocks in companies?

Where could people buy and sell stocks in companies?


What are the worst stocks to buy during a recession?

The worst stocks that you can buy during a recession is the most expensive stocks on the market. The prices will continue to drop as you lose even more money so the safest option is to avoid buying stocks until the recession recovers a bit.


People buy these as a way to earn money?

stocks you buy and in the years can get money


How did buying on margin allow more people to invest in market?

Buying on margin allow people to buy more stocks with only a fraction of the cash needed to buy those stocks. These allowed more people to invest in the stock market that would not afford to come up with the full cash to buy the stocks in question.


Why do people have stocks?

People buy stock to have monthly income from dividence that the company pay


What is In order to have a professional buy stocks for them millions of people purchase?

222


What are people that want to buy or sell stocks called?

Trader or Invester


When is a good time to sell your stocks?

The best time to sell your stocks is when the economy in what ever country is going up, This is the time that people go to stocks markets and buy.


Who are the shareholders of the corporation?

the people who buy stock and own the company


How can you be a part of the stocks mark?

buy stocks


Millions of people purchase?

MUTUAL FUNDS which is an easy way to have a professional buy stocks for them.


Where could people in the 1800s buy and sell stocks?

By adds, then they will mail them to the customer who bought it.