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most of the businesses did very terable and other went flat out broke, thus, causing many businesses to go out of businesses

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Q: How did events in the stock market affect businesses?
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Continue Learning about General History

What extraordinary events happened in 1929?

the stock market crashed which led to the Great Depression


Which of these events marked the beginning of the Great Depression?

The Stock Market crash. It is also called Black Tuesday and the year is 1929.


Why the stock market crash as the cause of the Great Depression is a misconception?

The Stock Market Crash of 1929 did not cause the Great Depression but was an indicator of the underlying economic problems that went unnoticed or ignored during the 1920s. There was no governmental regulation of banks or the stock market to prevent buying and selling of stock that was either not listed at a price reflecting the actual value of the company or of letting the buy and sell quantity determine the cost of the stock. Banks were permitted to gamble with depositor's money to buy stock on the stock market. Many businesses listed on the stock exchange did not exist or existed only on paper. The true value of many businesses on the exchange were not public or listed accurately. Too much borrowing (buying on margin) allowed brokers and lenders to get in way over their head. As the economic problems started to effect the overall economy, the market collapsed.


Did the federal securities act regulate the selling of stock on the stock market?

No, the federal securities act did not regulate the selling of stock on the stock market. :)


Why did stock prices decline in 1929?

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.

Related questions

How current events affect the economy?

Current events affect the economy on an hourly basis. If you follow the stock market you know that any negative events that happen in the world immediately affect the stock market. Good news makes the market go up and negative news makes the market go down.


What is traded in stock market?

Because Stock Certificates are a representation of fractional ownership in a company, trades in the stock market represent buying and selling pieces of businesses.


How does stock market anomalies affect the stock market Does this create a negative or positive effects?

cool


What is stock market events of 1929 in which investors lost millions of dollars due to a stock market that kept falling?

a crash


Does the moon phase effect the stock market?

No. Those are just rumors, the moon phases do not affect the stock market.


What business has the best stock market?

The stock market is common for all businesses and industries. The stocks of all companies are listed in the same index in a particular country.


Does commodity and equity stock market affect each other?

Yes. Commodity and equity stock market affects each other.


Why would it be important to track what happens in the stock market today?

Checking the stock market today will help inform about businesses one is interested in purchasing stock from. For example, if the stock market says a business is doing well and stock prices are trending up, one may have good luck in purchasing stock from them.


How did Roosevelt's Square Deal affect American businesses?

It made American businesses go into great depression and lose their stock.


A weak stock market is a?

A weak stock market occurs when businesses lose money due to low consumerism, due to a slowed economy. This economy is nicknamed a BEAR economy.


Where can one find an accurate forecast for the stock market?

An accurate prediction of the stock market is nearly impossible to find. Nobody can predict what will happen exactly, because there can always be unforeseen events that effect the future of the stock market.


Can people influence the stock market?

People can influence the stock market thru Investor confidence, company financial health and statements, political factors, and the current state of the economy all affect the stock market