5. What contributed to the overinflation of the stock market in the 1920's

A. employers forced employee to buy their stock

b. stock speculation

c. a closed stock market that few people had access to

d. not enough peole buying stock

Respuesta :

I think its either A or C!

In 1920, when there was inflation in the stock market, the biggest contribution was stock speculation. Hence, Option B is correct.

What is stock speculation?

Speculation is a kind of trading that involves high-risk management. The trading is done in financial instruments, and the motive is to get the maximum benefit from the fluctuations of the market. The ones who are engaged in such kinds of activities are known as the speculators.

At the time of the price movements of securities, when it is in a state of highly frequent and volatile, it is the speculators who are prevalent in the markets. When the market volatility is high, it is the speculation that is more likely to lead to losses.

When it was the time of 1920, there was a sudden boom in the stock market of the United States. Which result made Millions of Americans purchase stock and because of this invested money in the stock market and stocks became inflated in price.

Thus, Option B is correct.

Learn more about stock speculation from here:

https://brainly.com/question/27445719

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