Question

one of the biggest reasons that problems were able to get as bad as they did, and the panic was able to spread so quickly, was a lack of information. new investors were not fully aware of the rules they were making when they began investing (nobody let them practice on trading platforms!), and the economy was evolving so quickly that even professional investors did not know if prices were rising because of a general increase in value, or as part of a bubble. during the crash itself, so many people were trading in such high volumes that the stock tickers were not able to keep up - often falling 3 or more hours behind the real time prices. since investors did not know how much they were losing, but they knew things were bad, it caused even more panic and pushes to sell everything as fast as possible. one minor result of the stock crash was a huge improvement to the ticker system to speed up how fast information could be conveyed to investors. pop quiz which of these is not one of the causes of the stock crash? new investors trading on speculation rather than value new technologies made many old companies to fail falling wheat prices too much margin trading why did margin trading cause so many problems? when stocks used as collateral started to lose value, brokers forced borrowers to pay back loans immediately borrowing any money for investments is always very risky only inexperienced investors were using margin, so they all doomed to fail one of the banks is mostly for gold storage and is less important why is speculative trading dangerous? all stocks eventually lose much of their value too much attention on some speculative stocks means other good investments are not noticed prices become based on hype instead of value of the company, and so are likely to crash speculation only really happens around stocks based on some sort of scam submit

Explanation:

• First Question: The text does not mention new technologies making old companies fail as a cause of the stock crash. It talks about lack of information (new investors not knowing rules, market evolving fast), high - volume trading causing ticker delays, and margin trading.
• Second Question: Margin trading is risky because when stocks (used as collateral) lose value, brokers force borrowers to repay loans immediately. Borrowing for investments is not always very risky (it depends on the situation), experienced investors also used margin, and the bank - gold storage part is not relevant to the problem of margin trading.
• Third Question: Speculative trading is dangerous because prices become based on hype (not the company's actual value), making crashes likely. Not all stocks lose value eventually, over - attention to some stocks (while ignoring others) is not the main danger compared to the hype - value issue, and speculation is not limited to scam - based stocks.

Answer:

• First Question: New technologies made many old companies to fail
• Second Question: When stocks used as collateral started to lose value, brokers forced borrowers to pay back loans immediately
• Third Question: Prices become based on hype instead of value of the company and so are likely to crash