What contributed to the financial crash in 1929?

Question

Quizplus · Accepted Answer

Widespread purchasing of stocks on margin, or buying stocks with borrowed money, led to artificially-inflated stock prices and a speculative bubble. When the bubble burst, investors panicked and sold their stocks, triggering a stock market crash. International unrest and a decline in manufacturing productivity may have contributed to economic factors leading up to the crash, but they were not direct causes. Government regulation, or the lack thereof, may have played a role in allowing for the risky practices of buying stocks on margin.

What Contributed to the Financial Crash in 1929