select the correct answer. why did so many people invest in the stock market in the 1920s? a. they felt it…

select the correct answer. why did so many people invest in the stock market in the 1920s? a. they felt it was safer to invest in stocks than in bank deposits. b. they had faith in the stock market because it was well regulated. c. they believed the majority of stocks were undervalued at that time. d. they could buy stocks \on the margin,\ so they needed less initial capital.

select the correct answer. why did so many people invest in the stock market in the 1920s? a. they felt it was safer to invest in stocks than in bank deposits. b. they had faith in the stock market because it was well regulated. c. they believed the majority of stocks were undervalued at that time. d. they could buy stocks \on the margin,\ so they needed less initial capital.

Answer

Brief Explanations:

In the 1920s, buying stocks "on the margin" was popular. It allowed investors to pay a fraction of the stock - price upfront (less initial capital), which attracted many people to the stock market. Bank deposits were not seen as less safe compared to stocks in general perception then, and the stock market was not well - regulated. There was no widespread belief that stocks were undervalued; rather, there was a speculative bubble.

Answer:

D. They could buy stocks "on the margin," so they needed less initial capital.