We are presenting today:
Causes of the stock market crash 1929
- stock market - is a market in which shares of publicly held companies are issued and traded either through exchanges or over the counter markets.
- the government had no laws or restrictions on the stock market which lead to overpriced stock
- causes of the stock market crash
- buying on margin - you got stocks for a fraction of the cost
- overproduction and under consumption of goods - not enough people bought the amount of things being made
- banks investing - banks lost your money by putting it in the stock market cause they thought they would make money
- stock pools and watered stock - wealthy would buy all the stock and raise good talk but it did not realistically represent the company so when people bought it it was worth nothing wealthy would pay newspapers to say nice things and really it was not worth what they said
- unrealistic view of the market - people had the believe that stock would never go down and never realized it was false until they started loosing money
- weak banking system - there was a high bank failure rate and lots of people lost money
- federal reserve system - increased interest rates because there was to many people borrowing money
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