Question

how did stock speculation endanger the economy? it made real values more important than paper values. it forced companies to issue less stock than they wanted to. it made companies seem like they were more valuable than they really were. it lowered the value of the dollar. question 5 1 pts

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: Stock speculation typically inflates "paper values" (stock prices) over real values, so this is incorrect.
• Option 2: Stock speculation doesn't force companies to issue less stock; in fact, it might encourage more issuance in some cases, so this is wrong.
• Option 3: Stock speculation involves buying stocks in the hope of quick profits, which can drive up stock prices beyond a company's actual worth, making it seem more valuable than it is. This matches how speculation endangers the economy (e.g., leading to market bubbles).
• Option 4: Stock speculation primarily affects stock prices and market stability, not directly the dollar's value, so this is incorrect.

Answer:

C. It made companies seem like they were more valuable than they really were.