Stock Market Crash Of 1929 Research Paper

In the years leading up to 1929, the American economy was thriving and stock trade sales were at their highest peak. The majority of people were thriving in this newfound success, and had been constantly building off their fortunes. The people of the United States had never lived through such a time, so experiencing this for the first time they were ignorant of any negative effects that could occur. They never would have expected the economy to undergo such a drastic change in such a short period of time. According to credible sources, the unemployment that resulted from the Stock Market Crash of 1929 impacted choices and caused financial anxiety and panic.

In the 1920s the stock market soared, and the more it grew, the more people wanted to invest and put money into it. Many of the people bought on margin, which meant that the people only paid a part of a stocks worth when they would buy it and the rest when they sold it (about.com). The United States stock market crashed because of the over production, which meant America industry was truing out more good than people could pay (Ross ). The stock market crashed quickly spread from New York to virtually all sectors of the United States economy. In eevery state, there were shops, manufacturers, farms, and other enterprises, which were both small and large, went into bankruptcy by the undreds. This caused the employes to be laid off, and the amount of employment into a much greater amount (Ross 7, 8). But this all was created because of Black Thursday which started and marked the beginning of this greatest economic crisis

Following WW I in the 1920’s, there was a decade of an economical explosion. The post-war era brought about many changes. Businesses showed great profits, migration to big cities of industrial companies occurred with the hopes of making a better life, people were given the opportunity to purchase things on credit, while others borrowed money making poor decisions buying high priced stocks with the intention of selling stocks for a profits to repay lenders. When Black Tuesday occurred on October 29, 1929, this marked the beginning of the Great Depression that left devastating economic hardships for the American people. Although it was always my belief that the stock market crash was the sole contributor of the Great Depression, there was

The 1920s was an economic growth period for American companies and businesses. One of the key ways of making money during this period was to buy stocks and shares. As with consumer goods such as washing machines and kitchenware’s, there was the option of buying stocks and shares on credit, which meant that purchasing shares on the stock market was available to almost everyone.

It was during the 1920’s that the U.S stock market expanded rapidly until it reached its peak in August 1929. By that time, unemployment had risen and production had already declined. This left stocks in great excess of their real value. Other causes that led to the stock market crash was the rapid increase of debt, low wages, an agricultural sector that was struggling, and a large amount of bank loans that could not be liquidated or paid off. In September and early October 1929, stock prices began to drop. The fall began on October 18 and on October 24, otherwise known as Black Thursday, 12,894,650 shares were traded. Bankers and investors tried to get the market to stabilize by buying a great amount of stocks, which produced a rally on Friday, October 25. On October 29, which was also known as Black Tuesday the stocks dropped completely and billions of dollars were lost. This caused thousands of investors to be wiped

Throughout the 1920’s the Us economy expanded rapidly and it more than doubled its wealth between 1920 and 1929. Investing in stock had gained popularity all the way from millionaires to janitors. This gained attraction also caused the stock market to expand rapidly. By 1929 production and consumption goods decreased as unemployment decreased. This trend made stock investors very concerned and nervous which made them start to sell their overpriced shares on the market. On October 29 1929 A.K.A Black Thursday over 12.9 million shares were traded that day which resulted in the stock market crashing. Thousands of millions of share which were highly inflated, now turned into worthless stocks. This crash caused many business to slow down production and fire many workers.

Beneath the vibrant and vivacious atmosphere of the 1920s, the underlying issues of buying stocks on margin and increasing credit catapulted America into a series of struggles that would test the limits of its capitalist economy. Many middle-class Americans seized the opportunity to buy stocks on margin and utilize banks for loans so they could participate in the thriving realm of Wall Street and its potential wealth. But buying on credit wasn’t just limited to stocks and the bull market-- across the country, the rise of consumerism encouraged people to buy on credit and superficially raised the standard of living for millions of Americans. Unfortunately, the same buying on credit that allowed people to enjoy a lavish and fulfilling

On Tuesday, October 24, 1929, the United States stock market experienced the single most catastrophic crash in its history. This date would come to be known as “Black Tuesday”. Before Black Tuesday, America was experiencing one of the single greatest economic eras of prosperity. So much so, that it was known as the “Roaring 20’s”. During this time the amount of American wealth tripled, with mo re money going to the top 10% of people and the bottom 90% being left behind. There were more and more people buying company stock, but there was not enough people selling stock, which led to massive amounts of price inflation. This inflation led to the stagnation of various industries, such as, agricultural and manufacturing. When stockholders realized that the companies that they were investing in were not worth the stock they purchased them for there was a major sell out, which led to the bankruptcy of banking, agricultural, and manufacturing

Both domestic and international factors led to the Great Depression, and one of the domestic factors involves the 1929 crash in the stock market. This event has come to be known as “The Great Crash.” It was in autumn of 1929 that the market actually began to fall apart. October 29, “Black Tuesday,” marked the day in which all efforts to save the market had failed. Throughout the 1920s, stock prices had been rising steadily, but in 1928 and 1929 they surged forward and the prices of stocks greatly rose and when they reached their peak most people sold their stocks to earn a profit. So many people sold their stocks at a rapid rate that the corporations were unable to pay the shareholders. In this time frame, over sixteen million shares of stock were

By 1929 70 percent of the nation’s families did not earn enough for a good standard of living. Stocks are bought and sold in a stock market. A share of stock is a share of ownership in a company. The stock market rose sharply as business boomed. The value of stocks sold on stock market increased by four times between the years 1920 and 1929. Ordinary Americans started to buy stocks. There were many new goods that were introduced in the 1920s, people often started to buy them on credit. By the end of the 1920s, people had used up their credit. Spending dropped sharply, and warehouses filled with products that no one could afford to buy. Banks lost a lot of their money, many banks failed as a result of the crash. People who had money in the banks

Firsty, Gary Richardson, an author, educator, and researcher who obtained degrees from both UC Berkeley and the University of Chicago, states, the “financial boom” of the economy and stock market “occurred during an era of optimism,” which is referred to as the Roaring Twenties. Once the initial financial success ceased to exist, horrible events ensued. However, before the stock market imploded, “people bought shares with the expectation of making money,” which Tejvan Pettinger explains in the article “What Caused the Wall Street Crash of 1929?”. In addition, this buying of shares and investment in stocks lead to a “new industry of brokerage houses, investment trusts, and margin accounts,” allowing “ordinary people to purchase corporate equities” (Richardson, Gary). Soon enough, people were “borrowing 80-90% of the value of the shares,” which “left investors very exposed when prices fell” (Pettinger, Tejvan).

During the 1920s the New York Stock Exchange was a bustling place where many were investing and making money on their returns. Many made fortunes purchasing stocks and waiting for the value to escalate and then immediately selling them thereby making a profit. Suddenly the stock market crashed on October 29, 1929 eliminating 40% of the value of common stock in America. Stock prices plummeted as investors rushed to sell their assets before they lost everything. This was the start of The Great Depression. Many had lost their life savings after the collapse. Citizens lost confidence in the capitalistic economy and by 1933 the value of stock on Wall Street was less than a fifth of what it was in 1929. By the end of the year, investors had

Everyone wanted to sell their stocks to get money from it while they can, but more people were selling than buying. Their stocks “lost as much as 77% of their peak value.” A stock that was possible worth a hundred dollars, is now only worth thirty three. Many investors couldn’t sell their stocks at all and many ended up losing a great deal of money. The banks couldn’t stop the stock market crash and soon gave up on helping the economy. Many people started to lose all of their savings and just start to purchase basic necessities during the depression. “Not only had individual investors put their money into stocks, so did businesses.” which made people who worked for or owned the business lose their jobs and the depression started to get even worse. The panic and depression was caused by the Stock Market crash and everyday would people lose their money because of it which made the Great Depression even more so

The 1920’s in America were known as the “Roaring Twenties.” Americans could all live a life of luxury. Technological advances and new inventions were improving the quality of life in every home. Working class Americans were able to enjoy automobiles, telephones, and new appliances. Banks began to finance these new lavish commodities to citizens using installment plans. No one was deprived the right of living the American dream. However, excessive borrowing, stock speculation, greed, and manipulation would tumble America into the Great Depression which would last for nearly a decade. On October 29th, 1929 Black Tuesday caught up with the recklessness of Wall Street and billions were lost.

“By 1929, 2 out of every 5 dollars a bank loaned [to people] were used to purchase stocks.”( Suddath) The days that transpired are infamous and will live on through the history of America.