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The Stock Market crash was the signal that the Great Depression had begun. There was over speculation in the Stock Market, which was not regulated.Many Americans purchased stock on credit. This was known as margin buying. Many businesses that were listed on the Market were not checked out by brokers and many were not worth what they were valued at on the Stock Market. There were no government regulations so a company could claim whatever wealth it wanted. A lot of the companies only existed on paper and many who invested in the stock market did not check to make sure the company was legit. This was a period when everyone thought the Stock Market would continue to climb but beneath the surface of this false boom time were events that were causing the economy to crumble.
Wiki User
∙ 11y ago
Wiki User
∙ 11y agoThere are a few reasons the stock marketcrashed. One reason is that many people but stocks "on margin", basically a down payment for a stock. If one person had fifty dollars, they could buy, say, five hundred dollars of stock. Then, when the market rose, and their five hundred was worth a thousand, they would pay off the original cost of five hundred, thus gaining a tidy profit of five hundred for themselves. This lead to money that didn't exist being placed into the market.
However, in those few days in October, perhaps the greatest reason was the immense volume of trading. The ticker tapes, on Black Thursday, Black Monday, and Black Tuesday, were several minutes to hours behind what the actual trade value was. This led to inaccurate prices, which eventually led to a market downturn. This downturn scared people, and many panicked people sold stock in hopes that they wouldn't be too affected. This caused the market to downturn even more.
Wiki User
∙ 11y agoThe Stock Market Crash of 1929 signaled the beginning of the Great Depression, it did not cause it. There was over speculation in the Stock Market, which was not regulated.
Many Americans purchased stock on credit. This was known as margin buying. Inflated stocks indicated that not all companies listed on the Stock Exchange were healthy and economically sound.
Wiki User
∙ 12y agoDue to consistent increase in stock value, people over speculated the stock prices and heavily bought on margins buying which lead to stock market crash in 1929.
Wiki User
∙ 13y agoThe stock market crash started a chain of events that caused the American economy to collapse.
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What was the danger of the stock speculation?
stock prices would decline and investors would lose money
What lead to a huge decline in stock prices during the stock market crash?
People selling their shares
How did the stock market crash of 1929 affect Georgia?
The 1929 market crash affected every state, including Georgia. Georgia had it especially rough since its cotton fields were also plagued by the boll weaver bug which caused cotton production to fall and prices to decline.
Why did the stock market begin to decline?
In the year 2008 stock markets declined because of the global economic crisis Generally stock markets decline when there are more sellers than buyers. If there is large scale selling of stocks the stock prices tumble which in turn brings down the stock market.
What event is considered the start of the Great Depression?
The stock market crash of 1929. novanet - stock prices crashed when millions of shares of stocks were sold
What was the increase in the stock prices from 1920-1929?
what was tincrease in stock prices from 1920 to 1929
What was the increase in stock prices from 1920 to 1929?
what was tincrease in stock prices from 1920 to 1929
What kind of market is when there's a decline or expected decline expected decline in stock prices across the entire stock market?
Bear
Why did stock prices first began to decline in late 1929's?
because stock brokers stopped marginloans ,company earnings declined,several companies went bankrupt and investors began to sell their stocks.
A market is when there's a decline or expected decline in stock prices across the entire stock market.?
bear apex ♥lluvyanna.
A market is when theres a decline or expected decline in stock prices across the entire stock market?
bear apex ♥lluvyanna.
What was the danger of the stock speculation?
stock prices would decline and investors would lose money
What was the dangerous stock speculation?
stock prices would decline and investors would lose money
Black tuesdays refer to what?
the day the New York stock marketcrashed in 1929.-------------------------------------------------A1----------------------------------------------------------It marks when the Stock Market crashed in the 1929 ,and was the beginning point of the Great Depression of the 1930's .
What event occurs on October 29 1929?
It was the day that marked the decline of the stock market.
What lead to a huge decline in stock prices during the stock market crash?
People selling their shares
What caused the stock market crash of 1929&altQ=What event caused the stocl market to crash in 1929?
Among the other causes of the eventual market collapse were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated. ... Stock prices began to decline in September and early October 1929, and on October 18 the fall began
