How did the boom times of the 1920s lead to the stock market crash?

The boom times of the 1920s, characterized by rapid economic growth and widespread speculation, led to inflated stock prices and a culture of excessive risk-taking. Many investors bought stocks on margin, borrowing money to invest, which increased vulnerability to market fluctuations. When economic indicators began to decline, panic selling ensued, ultimately triggering the Stock Market crash of 1929. This crash marked the beginning of the Great Depression, as the unsustainable growth and excessive speculation collapsed.