How did the belief that stocks were overvalued in the late 1920s effect the american economy? companies made huge profits on stock speculation. people held on to their stocks, hoping for profits. people began questioning the value of the stocks they owned. businesses refused to sell their company stocks.

The belief that stocks were overvalued in the late 1920s effect the American economy by causing the Wall Street Crash and the Great Depression in the 1930s

When talking about investments we must consider that everything that happens on the stock market is based on events or speculation, the stock markets definitely did not crash all of a sudden.

In the decade of the 1920’s, there was a huge rise in bank loans in the United States. The market was way overvalued, and people had false expectations

Prior to 1929, the market gave so much potential for being overvalued, which triggered people to buy a lot of shares based on unrealistic expectations. Even loaned money was used to buy even more shares, expected to gain a higher profit. In the end, prices were not much driven by any other economic factors than blind optimism.

so the final answer to both questions are:

Causing the Wall Street Crash and the Great Depression in the 1930s.

People held on to their stocks, hoping for profits.

The Answer is People held on to their stocks, hoping for profits.

Hope this helps

isolationism is a doctrine practiced by the united states for much of its history with the aim of not intervening in external affairs that did not pose a real threat to their country. the united states managed to maintain a state of political isolation throughout the nineteenth century and the first part of the xx. few nations have been able to maintain such a position for such a long period of time. historians argue that it is largely due to geographical reasons, given the physical distance between europe and the usa. uu the venataja of this situation is that the national state can spend its resources in satisfying all the needs of its inhabitants, without the need to invest in armament and equipment for a war that does not directly affect the country.

internationalism is a political and cultural movement that advocates for greater political and economic cooperation among nations for mutual benefit. this novimiento was transformed over time, today it includes military intervention in international conflicts with the objective of maintaining peace. the advantage of this move is in the international contacts and the influence developed by the country that carries it forward.

between the two modes of relations between states, i prefer the first, since i believe it is of the utmost importance to satisfy the needs of citizens and work for their development and as a last option to act on the international level.