What caused the stock market to collapse in the Great Depression? and Stock Graphics Vector

What caused the stock market to collapse in the Great Depression?

a. Stock prices being to high for most companie's worth
b. More stocks were sold than there were stock shares


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Answer by dave p
A. Stocks were overvalued due to the speculative nature of most peoples investment stragegies. That, coupled with no standardized GAAP led to an inconsistency between the financial statements of company A when compared to company B compared to company c and so on... which led to the establishment of the SEC in 1934.

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