Question

in the late 1920s, buyers in america engaged in speculation, or ______.

• buying a stock by paying only a fraction of the stock price
• taking loans from stockbrokers
• betting the market would keep climbing
• putting new money into the bear market

Explanation:

In the late 1920s, speculation in the stock market meant investors were betting that the market would continue to rise (climb) so they could profit. Let's analyze the options:

• "Buying a stock by paying only a fraction..." describes buying on margin, not speculation.
• "Taking loans from stockbrokers" is part of buying on margin, not the definition of speculation.
• "Betting the market would keep climbing" matches the idea of speculation (risky investment hoping for price increase).
• "Putting new money into the bear market" is incorrect as a bear market is declining, and speculation was about the rising (bull) market.

Answer:

C. betting the market would keep climbing