Is There Such A Thing As A Safe Investment?

The stock market crash caused an economic depression in the US and also worldwide. It destroyed many businesses and investors and had a negative impact on America. Steps have been taken to prevent a similar crash from

During the 1920's millions of Americans began investing in stocks for the first time. They heard about how rich people were getting by investing so they all decided to do it. Many new investors entered the stock market using borrowed money. Stock market prices rose steadily as inflated market demand outpaced increases in the capital value of businesses. Investors began to realize that a large imbalance existed between stock prices and the amount of money needed to back them up, and began to sell. On October 29, 1929, great numbers of people tried to sell their stocks all at once. This created chaos in the accounting of stocks and for brokers. The New York Stock Exchange and other exchanges prices dropped so dramatically that this event became known as the crash of 1929. Millions of investors lost their savings in the crash and many were deeply in debt since

The Great Crash also known as Stock market crash of 1929, happened in 1929 which was one of the biggest and important history of America. During this time in late October the stock market of the country crashed which lead to the beginning of great depression, and it has lasted for 10 years. Many countries got affected due to the great crash, especially all Western industrialized countries. “Black Tuesday (October 29), in which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day.” (“Stock”). After the crash, the country had tried to cope up from the loss, but it still continued to drop. “By 1932 stocks were worth only about 20 percent of their value in the summer of 1929. (“Stock”). Due to this depression, nearly half of the banks failed, businessman faced bankrupts and people have lost their

Besides ruining many thousands of individual investors with crash, the decline in the value of assets greatly strained banks and other financial institutions as well. These places made the same big mistake the American people did before the crash, they had too much confidence and was very naive about the current state of the economy. Due to their false confidence in the economy they made an overextension of credit. Particularly the banks that held stocks in their portfolios were affected. Many banks were so confident in the newly rising economy that they irrationally gave out loans to citizens who wanted to invest in stock even when the stock was not 100% secure which became apparent during the Stock Market Crash of 1929 (Nelson). The crash of the banks did not only

The stock Market crash was caused because the market was overrated, overbought and dominated. The economic conditions were not helping anyone. The Crash was due to the market opening of 11% or less. Financiers and institutions chipped in with proposals over the market price to stop the panic. Even though the losses on that day were smaller compared to the next two days. Yet, this loss was unreal, as the next Monday, commonly now known as Black Monday the losses were dropping 13% without provoking the margin calls. Afterward, the offers disappeared completely and the market fell again, another 12%. From this point on the market completely fell hitting rock bottom causing horrible things to go wrong. This was one of the factors that lead to the great depression.

The Wall Street crash ( know as Black Tuesday ) was a massive stock market crash that occurred in October of 1929. This crash cause widespread economic disaster that spread

On account of the Wallstreet stock market crash which took place in 1929, the nation was put in a huge financial stress. Many people rushed to banks to take out their savings but once they got there, there was no money left. About eight-hundred banks closed and nine million bank accounts crashed (ABC News). Every cent that a family ever

This led to 10 to 15 billion dollars in loss in value. That day was known as Black Tuesday. The Stock Market drop because there was not that many new investors during the time. Once the Stock Market crash people rushed to the banks to deposit all their lives savings because, they were afraid of losing their money. Also the banks had put money in the stock market which caused 600 banks to collapsed by 1929.

“On October 29,1929, Black Tuesday hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. In the aftermath of Black Tuesday, America and the rest of the industrialized world spiraled downward..” (Stock Market Crash of 1929) The Stock Market Crash was significant because it marked the start of the Great Depression. The Great Depression was the biggest economic downturn in American History. It not only caused millions of people to become jobless, but it also caused thousands to lose their life savings. People started to live in horrible conditions and they even began starving.

The crash of the stock market had occurred because consumers were not spending near enough on products. So the products are becoming unuseful and they are just collecting dust. As consumers were not spending, the stock prices kept jumping up which then caused the bubble to burst and crash. On October 24, 1929 is when 12.9 million shares were traded and this is known as black Thursday. Five days later on Black Tuesday another 16 million shares were sold. During that time if you had purchase stock on margin you would receive anything. After the crash, people were having to live off what little income they had and start paying purchases by check and card. The Great Depression ended up spreading to other countries beside the United States.

The second most impact from the stock market crash is the effect it had with people's views on politics. The view people had on the president of the time, Hoover was negatively affected the people hated the president. At the time Hoover was trying to help but his

Support was lost and there was no one left with the ability to invest and rescue it because it was too late. One day, “Black Thursday”, was when the panic had begun and people felt the need to sell their shares. The following week on what is known as “Black Tuesday”, prices were reaching all time lows. Confusion had begun to control the market. During this Great Crash investors lost everything. The Dow-Jones Industrial Average also plunged due to the collapse. All paper money was heading toward deletion. Pessimism over the situation was increasing and people realized they needed to be more careful in their investments. The confidence that was once in the system was gone and the reality of the situation set in ("Causes of the Great Depression" Great Depression and the New Deal Reference Library).

The Stock Market Crash of 1929 is considered one of the worst crashes in United States history. One of the most extensive results of the Stock Market Crash was the Great Depression, which had lasted throughout the 30s. It impacted many businesses and thousands of people lost their jobs, worsening the condition of the economy. Overall morale in the US was miserable for many citizens who were left poor and out of a job. The Stock Market crash brought about big changes and bigger problems, both socially, politically, and economically.

The types of securities we focused on were ETF’s and stocks as we wanted to be more risky than passive on spending our money as we wanted to grow at a quick rate, and not be passive by buying bonds which would grow at a slower rate. We invested in well known companies and we made sure we were diversified by investing in all different sectors of the market. We also invested in companies we like or have known about from a day to day basis, as well as investing in companies we felt had huge immediate upside after

In regards to investing in stocks, bonds, currencies, or other investment products, it has always been a normal emotion to be happy when a stock price rose and upset when a stock price fell. Yet for Warren Buffet and his team at Berkshire they welcome these declining prices because of the opportunities it brings. According to Warren Buffet, a true investor would be buying stocks and businesses for their entire life, and “with these intentions, declining prices for businesses benefit us, and rising prices hurt us.” Understanding that the investor is going to be a buyer for eternity an investor should