- Stock and Stock Market - What is Stock? A type of security that signifies ownership iin a corporation and represents a claim on part of the corporation's assets and earnings. What is Stock Market? Market of exchange of stock. Stock Market Crash - A sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of money causing mass panic. Credit Boom - Rapid expansion of lending by financial institutions. How did this affect them? People got loans from the bank to buy stock and were unable to pay back when loans were due. "Buying on the Margin" - you could pay 10-20% of a share and meant you were borrowing 80-90% of shares. The effect of this was getting more money per share. This created "Margin Millionaire". Once the stock profits fell it wipes most of them because they owed large amounts of money. Mismatch between production and consumption - Meaning "over production". Companies were making all of the productions. People were unable to buy all of these things once they lost all of their money in the crash. There were a whole bunch of left over products. Weakness in the Bank System - 3,,000 banks in America. Prone to becoming bankrupt if they were to run out of funds/deposits. Many banks in rural area went bankrupt due to agricultural recession (overproduction in farm goods). OVERVIEW - October 24, 1929 - 12,894,650 shares were traded. October 29, 1929 - Wall street investors traded in 16 million shares. Billions of dollars were lost and thousands of investors wiped out. Unemployment before - 1,550,000 people Unemployment after - 12,830,000 people (at the peak of the depression 1933. Over half of US banks shut down. NICKNAMES OF THE 20'S - "The Roaring 20's", "Republican Era", "The Jazz Age", "The Lost Generation", Boom to Bust", "Decade of Normalcy", "Prosperity Decade", "Prohibition Era", "The Advertising Age",
You need to be a member of History 360 to add comments!
Comments
You are missing two weeks.