Today we discussed our blogs.
Stock is the money that you give to a company to expand and grow. The stock prices continued to go up. Margin buying- when people would borrow money to buy stock. If stock prices start to go down then a major panic happens. Only 3% of people were involved in the stock market. By the late 1920's many companies were not making very much money at all. The middle class people were in major debt. People were not buying goods which caused companies to not make any money. People lost their jobs because no consumers were buying anything.
The stock prices kept going way down because no one wanted to buy and everyone just wanted to sell. Thousands of banks closed down because they didn't have any money. When people went to the banks and tried to get their money out, they could not because the banks have closed and so the people were pretty much out of their life savings.
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