Question 9 • [HSSUS] US History, Sem 1 (26-27)
A loss of confidence can lead many investors to sell, pushing prices down sharply. Widespread buying on margin is risky because investors borrow money to buy stocks and may be forced to sell if prices fall. A one-day drop of 20% is also a strong warning sign; a small rise in prices over a few days, by itself, does not indicate a crisis.
AI-written and checked against the verified answer.