The Stock Market

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Last updated 10:09 AM on 8/25/26
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6 Terms

1
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What was a common belief of American citizens about the stock market?

That everyone was a winner/ there were no losers

2
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Why was the stock market particularly unstable in the 1920s?

Too many people were buying shares ‘on the margins’ (on credit)

3
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What percentage deposit was needed for a share?

How long did the investor have to pay back the balance?

10-20%

3 months

4
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Why were Americans overconfident?

Rapid industrial growth and victory in WW1

5
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What percentage of Americans owned shares?

1%

6
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How was the spread of share ownership different in the 1920s to previously?

The shares were democratized, meaning people with a lower income could also purchase shares.