Stock Market Crash That Led To The Great Depression
Stock Market Crash Of 1929
By: Owen Davis
The stock market crash was a horrid economic crash that led to the Great Depression. Billions of dollars were lost in this horrific event. It occurred on Black Thursday, Black Friday, Black Monday, and Black Tuesday. Black Tuesday was the huge peak of the crash. The stock market was dropping because of various economic failures, so everyone wanted to get their money. It lasted from October 24, 1929 to 1939. Investors traded approximately 16 million shares of stock in one day on the New York Stock Exchange stock market. When investors went to the bank to get their money, there was no money in the bank for them to receive!
Although, the crash did not occur because of only one reason. The stock market crash was due to a market that many people bought, highly priced, and rising even as economic circumstances were not supporting the rise. The crash started on October 24, 1929 when the stock market started out 11% lower. Institutions and financiers placed bids above the market price, causing people to start worrying. The loss of money that day was modest with stock rising up and down over the next two days.
However, this bounce turned out to be impermanent, because the next Monday, now known as Black Monday, the market finished down 13% with the losses made worse by margin calls. The …show more content…
By 1933, almost half of America’s major banks were shut down. The unemployment was worsening, and affecting nearly 15 million people. However, precautions were made to prevent something this horrible from happening again. In 1934, the Securities and Exchange Commission (SEC) was founded to increase people’s trust in capital markets, and to oversee the market’s conducts. The SEC helps by requiring transparency in financial instruments being traded, and regulating brokerage firms. They also help by prohibiting some conduct like insider trading and enforcing laws in the financial
By: Owen Davis
The stock market crash was a horrid economic crash that led to the Great Depression. Billions of dollars were lost in this horrific event. It occurred on Black Thursday, Black Friday, Black Monday, and Black Tuesday. Black Tuesday was the huge peak of the crash. The stock market was dropping because of various economic failures, so everyone wanted to get their money. It lasted from October 24, 1929 to 1939. Investors traded approximately 16 million shares of stock in one day on the New York Stock Exchange stock market. When investors went to the bank to get their money, there was no money in the bank for them to receive!
Although, the crash did not occur because of only one reason. The stock market crash was due to a market that many people bought, highly priced, and rising even as economic circumstances were not supporting the rise. The crash started on October 24, 1929 when the stock market started out 11% lower. Institutions and financiers placed bids above the market price, causing people to start worrying. The loss of money that day was modest with stock rising up and down over the next two days.
However, this bounce turned out to be impermanent, because the next Monday, now known as Black Monday, the market finished down 13% with the losses made worse by margin calls. The …show more content…
By 1933, almost half of America’s major banks were shut down. The unemployment was worsening, and affecting nearly 15 million people. However, precautions were made to prevent something this horrible from happening again. In 1934, the Securities and Exchange Commission (SEC) was founded to increase people’s trust in capital markets, and to oversee the market’s conducts. The SEC helps by requiring transparency in financial instruments being traded, and regulating brokerage firms. They also help by prohibiting some conduct like insider trading and enforcing laws in the financial