The story behind the stock market crashing:
August 1929, brokers were lending these everyday investors more than half the value of the stocks they were buying. More money was on loan then there was circulating money. The days leading to the crash, the market was very unstable. On Black Thursday, the market lost 11% of its value. Over the weekend, the newspapers across the United States were talking only about the stock. On Black Monday most of the people dropped out of the stock market. Then Black Tuesday, the stock market lost an additional 30%. The stock market lost $30 billion with in two days.
Top 5 causes of the Great depression:
1.Stock Market crash.
Happened on Black Friday, October 29,1929. Thisis what over all sent us in to the Great Depression.
2.Bank faliures.
9,000 banks faild and all the people that had money in those banks lost all their savings.
3.Reduction in out buying things out of the United States.
Since the stock market crashed they didn't purchuse any thing out of the US. Because of this, peopel lost their jobs.
4.Europe and America's enconomy policy.
There was a high tax and less trade between America and oher contries.
5.Drought.
There was a drought and people couldn't even pay their taxes or other debts and the drought made people have to sell their farms but really made no profit out of it because they had to pay off other things.
Top 5 causes ot the stock market crashing:
1. Margin buying.
When someone did not have the money to pay the full price of stocks, they could buy stocks "on margin." Buying stocks on margin means that the buyer would put down some of his own money, but the rest he would borrow from a broker. This made a bunch of people and companies in debt. Margin buyers had to sell and there was then panic selling of all stocks.
2. Investment trusts.
1 billion dollars worth of these trusts were sold in 1929. The stock market was the reason these investment trusts made so much.
3. Public Utilities.
Public utilities were what was holding the companies, and investment trusts were rising, using large amounts of debt and preferred stock.
4. Over pricing.
Stock market prices were so expensive but weren't very reliable.
5. Intrest Rates.
Intrest rates were low so people borrowed money eaiser.
Comments
A little brief in spots. Also, be sure to list your sources.