Answer the Guiding Questions 3. Specifying What factors caused the stock market crash?

The stock market crash of 1929, also known as the Great Crash, was a major financial disaster that occurred in the United States in 1929. It was the most devastating stock market crash in the history of the country, and it marked the beginning of the Great Depression, a period of economic hardship and high unemployment that lasted for more than a decade.There were several factors that contributed to the stock market crash of 1929:1. Speculation: In the years leading up to the crash, there was a great deal of speculation in the stock market, with many people buying stocks on the hope that their value would continue to rise. This led to a rapid increase in stock prices, which was not supported by the underlying value of the companies.2. Overproduction: Many industries were producing more goods than could be consumed, leading to a surplus of products and falling prices.3. Weak banking system: The banking system at the time was weak, with many banks operating with little or no regulation. This made it easy for banks to engage in risky lending practices, which contributed to the crash.4. Lack of diversification: Many investors had put all of their money into the stock market, with little diversification in their investments. This meant that when the market crashed, they lost everything.5. Economic inequality: The 1920s were a time of great economic inequality, with a small percentage of the population holding a large percentage of the wealth. This led to a lack of consumer demand, as the majority of the population had little money to spend.Overall, the stock market crash of 1929 was the result of a combination of factors, including speculation, overproduction, weak banking, lack of diversification, and economic inequality. These factors created a perfect storm that led to the collapse of the stock market and the onset of the Great Depression.