During the 1920s, why did so many people heavily invest in the stock market? stocks were one way to make more money. banks were not offering very high interest rates. people had a lot of extra money they didn't need. profiting companies were worth investing in. need

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Herbert Hoover became president at a time of ongoing prosperity in the country. Americans hoped he would continue to lead the country through still more economic growth, and neither he nor the country was ready for the unraveling that followed. But Hoover’s moderate policies, based upon a strongly held belief in the spirit of American individualism, were not enough to stem the ever-growing problems, and the economy slipped further and further into the Great Depression.

While it is misleading to view the stock market crash of 1929 as the sole cause of the Great Depression, the dramatic events of that October did play a role in the downward spiral of the American economy. The crash, which took place less than a year after Hoover was inaugurated, was the most extreme sign of the economy’s weakness. Multiple factors contributed to the crash, which in turn caused a consumer panic that drove the economy even further downhill, in ways that neither Hoover nor the financial industry was able to restrain. Hoover, like many others at the time, thought and hoped that the country would right itself with limited government intervention. This was not the case, however, and millions of Americans sank into grinding poverty.

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Question: During the 1920s, why did so many people heavily invest in the stock market?

Stocks were one way to make more money.

Explanation: they did this because stock prices rose in number so fast so everybody started doing this and people actually got really rich of of these stocks

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(jacemorris04)

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