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Topic: Miscellaneous
Number of pages / Number of words: 5 / 1387
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One of the reasons was that stocks were overpriced and the crash brought the share prices back to a normal level. However, some studies using standard measures of stock value, such as Price to Earning ratios and Price to Dividend ratios, argue that the share prices were not too high. Another reason is that there were massive frauds and illegal activity in the 1920's stock market...


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Another reason is that there were massive frauds and illegal activity in the 1920's stock market. However, evidence revealed that there was probably very little actual insider trading or illegal manipulation. (1929?)

Margin buying is another reason why people believed that the crash happened. Though it is not the main reason, there was very little margin relative to the value of the market...


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