Asked by Ph??ng ?oàn on May 01, 2024
Verified
Why did so many Americans - over 50 percent of American families - invest in stocks in the late 1990s?
A) The automobile industry was booming.
B) Internet-based companies were booming.
C) Hedge funds were getting popular.
D) The defense industry saw a revival.
Stocks
Shares of ownership in a company, which represent a claim on part of the company's assets and earnings.
Internet-Based Companies
Companies whose primary business operations are conducted over the internet, offering services or products online.
Hedge Funds
Investment funds that employ diverse and often complex strategies, including leverage, short selling, and derivatives, aiming at high returns for investors.
- Investigate the components leading to economic transformations and obstacles in the 1990s and early 2000s.
Verified Answer
MD
Megan DorheimMay 01, 2024
Final Answer :
B
Explanation :
The late 1990s saw a significant boom in internet-based companies, often referred to as the "dot-com bubble." This period was marked by rapid growth in the use and commercialization of the internet, leading many investors to buy stocks in these new and promising companies, hoping for high returns.
Learning Objectives
- Investigate the components leading to economic transformations and obstacles in the 1990s and early 2000s.