Questions: What drove the stock boom of the 1920s? Rising corporate profits Rising wages for the middle class The ability of investors to purchase stock with little money Rising wages for the working class

The answer is: The ability of investors to purchase stock with little money.

Explanation for each option:

1. Rising corporate profits: While rising corporate profits did contribute to the stock market's attractiveness, they were not the primary driver of the stock boom. Profits alone do not explain the speculative frenzy that characterized the 1920s stock market.

2. Rising wages for the middle class: Although rising wages for the middle class did increase disposable income and potentially allowed more people to invest in the stock market, this factor alone does not account for the dramatic rise in stock prices during the 1920s.

3. The ability of investors to purchase stock with little money: This is the correct answer. The practice of buying stocks on margin, which means purchasing stocks with borrowed money, allowed investors to buy more stock than they could afford with their own money. This leverage significantly inflated stock prices and contributed to the speculative bubble.

4. Rising wages for the working class: Similar to the middle class, rising wages for the working class would have increased disposable income, but this was not a significant factor in driving the stock boom. The working class generally had less disposable income to invest compared to the middle class.

In summary, the ability of investors to purchase stock with little money, primarily through buying on margin, was the key driver of the stock boom in the 1920s. This practice led to excessive speculation and ultimately contributed to the stock market crash of 1929.