today we did blog discussions
stock- share of a company; want it to go up
stockmarket in 1920s- very prosperous because ppl wanted to buy more things (cars, washing machines, etc.)
people warned them that it wouldn't last but ppl kept spending their money
buying on margine- when ppl would borrow money to buy stocks (loans; buying on credit)
stock market- where pple buy and sell stock
banks invested ppls money into the stock market without ppls permission in order to make money for themselves.
stock speculators- bought stocks and bonds to make a quick profit without looking at the dangers
late 1920s companies weren't making much money
ppl had already bought the stuff that they needed
they were in massive debt
people not buying goods -> companies not making money -> people lose their jobs
cycle can be turned around
story of the stock market crash-
ppl were buying a lot of stock and they were buying on margine
they began to panic
wallstreet bankers- rich ppl would go and buy stock which made stock go up which saved the day; just that day
october 29 (black tuesday)- broke the stock selling record; 16.4 million
ppl were afraid it was going to keep going down
everyone wanted to sell their stock and no one wanted to buy so prices reached an all time low
resulted in banks closing down so ppl who didn't get their money out in time were out of their life savings
ppl found out that banks had been using their money to invest in stocks
many ppl lost everything
Comments