What Is The Stock Market Crash

There are primarily two theories as to why the stock market crashed in 1929, affecting innumerable people in the United States and around the world. One speculation to how the devastating catastrophe transpired is driven by the idea that there was an over-production of goods and services and an underconsumption by the people, creating a plummeting bubble; consumers held on to their money and stopped investing, hoping that the market would stabilize. Another common conjecture is the belief that the Great Depression was provoked simply by normal recession, within the business cycle, and was brought about by poor policy on the behalf of the Federal Reserve. Many believe the crash was frankly unavoidable because of the unprecedented combination

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

The stock market crash of 1929, additionally called the Great Crash, was a sharp decrease in U.S. stock exchange values in 1929 that added to the Great Depression of the 1930s. The market accident was a consequence of various economic imbalances and structural failings (Pettinger). In the 1920s, there was a fast development in bank credit and advances. Energized by the quality of the economy, individuals felt the share

Early in September the stock market reached an unsurpassed high. Immediately following this "high", the market began to gradually slide. On the afternoon of October 24, 1929 the great American stock market took a bottomless plunge. Investors finally realized the "stock boom had been an over inflated bubble." Margin investors were being ruined because stock holders tried to pay back debts. By November of 1929, the Dow sank from 400 to 145. In three days, the New York Stock Exchange removed over 5 billion dollars worth of share values. By the end of the 1929 stock market crash, 16 billion dollars had been erased off stock capitalization.

People began buying things such as cars and appliances on credit. Many people earned less money than needed to live a comfortable lifestyle. Businesses were letting people with lower incomes buy things on credit. Unfortunately the stocks rose faster than the value of the companies they represented. When the stock market collapsed, these people did not have the money to pay back what they owed. This resulted in financial ruin. Before the stock market crash investors traded about sixteen million shares on the New York stock exchange each day. After "Black Tuesday", billions of dollars were lost wiping out thousands of investors. Had most of those investors sold their stock the day before the crash, they would have received a large profit. The 1929 crash uncovered another problem in the United States. The nations banking system was in trouble. In the 1920's thousands of new banks were opened, however, most lacked adequate money in reserves. Between 1923 and 1929, banks across the country failed daily, but the general rising prosperity hid these failures. The crash made a bad situation even worse, and banks failed at a more rapid rate.

The collapse of the Stock Market in October 1929 began when 16,410,030 shares of stock were sold off in a single day and the market lost $14 billion in value, nearly five-times more than the annual budget of the United States, capping off a week in which the market lost 39.6% of its value between October 24th and October 29th. Many economists simply considered this part of the “normal business cycle” and believed that intervening to stop or reverse it would cause even greater problems. By July 8, 1932, when the market finally hit its bottom, it had lost a stunning 89% of its pre-crash October 23, 1929 value. ( )

According to reports, “prices fell as investors unloaded their stocks..” (Study Guides). This making hard on investors given the vast loss of money. This major event soon transpired into what is known as the Great Depression. The following Tuesday, also known as “Black Tuesday” a more worrisome event took place, “16 million shares were sold… the market then dropped 43 points..” (Study Guides). Finally the people of America’s eyes opened as they noticed the severe drop in the stock market. This caused thousands to panic all throughout wall street. Reports also show, “By the end of October $30 million worth of stock disappeared..” (Study Guides). During the summer of 1929 the American economy began its regular recession, as a consumer during this time spending money dropped. This made goods that were still unsold begin to pile up, slowing production down. The crash of the stock market pronounced the beginning of an awful depression throughout America's

Another big problem that led to the Stock Market Crash was public misconception. The general conception was that the stock market was an easy way to make money. People began believing that stock prices would go up forever. As a result, many people bought publicized stocks

In October 29 of 1929 was beginning when the stock market crashed and this day was known as Black Tuesday and marked the beginning of one of the longest and most severe depression that ever hit the U.S. When this occurred stock price fell at record levels and many began to sell their stocks in desperation. It was said than over 16 million stocks were sold at a fraction of its value and billons were lost.

The stock market is what one would know as a collective group of buyers/sellers that trade stocks, also known as shares on a stock exchange. These securities are listed on the exchange itself and trade freely each and every day. On the exchange, stocks move hands day in and day out. Companies are able to get their stock listed on the exchange at any time that they want. There are other stocks, too...known as OTC stocks or over the counter stocks that go through a specific dealer. Larger companies tend to have their stocks listed on exchanges all throughout the world. Participants in the market can be anyone from your grandma, to retail investors, day traders, institutional investors, and so forth. One notable exchange is the NYSE; also known as The New York Stock Exchange. Moving forward, a stock market crash is when a decline of stock prices takes place throughout the stock market that results in a catastrophic loss of wealth via paper. The crashes are driven strictly by panic 9 times out of 10 a crash takes place. As a crash is happening, panic occurs; the panic keeps evolving and ends up like the snowball effect before you know it. A crash occurs when economic events take place. These events are always bad news... The behavior of traders follows, which leads to a crash when panic ensues. Crashes normally occur of a seven day period and may extend even further. Crashes happen in bear markets as the market is already weak to begin with. Once traders see a drop in prices,

The stock market crash on september 24th,1869 had crashed because of one thing.The stock market crashed because the system controlling the market had a glitch which started to drop prices by 22%.This caused millions of people to try and go to their banks

Just about everyone has a reason for why the Stock Market Crashed in 1929. Aside from the views of the average person, Investopedia interviewed several economists who said that, “the market was overbought, overvalued and excessively bullish, rising even as economic conditions were not supporting the advance” (Pettinger 2). In order to completely understand what that means, it needs to be broken down and people have to watch what occurred pre-Stock Market Crash.

The stock market expanded quickly and reached its peak in August of 1929. At that time production had decreased and the employment rate was going up. This left a great amount of stocks at their real value.The stock market crashed on October 29, 1929; this became known as Black

The first time the United States struggled financially was in 1929. Some may know this as the dirty thirties, but a majority of us know it as the Great Depression. The Great Depression was caused when the stock market crashed. It crashed because the stock market was not representing reality. The shares were worth much more than what the companies said they were worth. “By 1933, nearly half of America’s banks had failed, and unemployment was approaching 15 million people, or 30 percent of the workforce” (Stock Market Crash of 1929). Another big factor to the stock market crashing was the fact that many people were buy stocks using credit, so when the stock market started to crash many had to sell in order to pay off their debt.

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