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How many individual investors invested in stocks before the crash of 1929?
Wiki User
∙ 15y ago
== == One of the significant contributing factors to the "crash of 1929 " was the large number of individuals who were buying stocks "on margin" with not enough actual cash to cover their buys. People who had small incomes, such as labourers and cooks and blue collar workers were " plunging " into the Stock Market, spending more than they could afford to spend. By buying on "margin " they only had to pay 10 percent of the actual price, but when the stock share went down in value, they couldn't meet the price required to pay it off, and they went bust. Multiply that by millions of investors, and it is ONE of the reasons for the crash. The same thing happened with millionaires, who were " over extended " and couldn't pay their "calls ". It can't happen today, as all the major stock exchanges in the world have automatic controls that will not allow it to happen. The rules have changed, for the better.
Wiki User
∙ 15y ago
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How can the Great Depression be traced to American investment in the stock market?
Investors borrowed money to buy rising stocks, but could not pay it back once the stock prices fell.
Where did the money go when the stock market crashed in 1929?
The money that was tied up in the Stock Market was the paper value of the stocks that were bought and sold. There was no regulation of the Stock Exchange at the time of the Great Depression so stocks and companies listed on the Exchange were often over-valued by the owners of the companies. As people tended to buy one stock over another, the value of that stock increased (on paper) while the value of the little purchased stock declined (on paper). When stock brokers started to call in the money they were owed by investors who had purchased stocks on time (called margin buying), the investors would try and sell their stocks in order to pay off the broker. Since many of the other investors were doing the same thing, the value of the stock declined and people found it next to impossible to sell their stock. When the Stock Market collapsed, there was no real money at the Stock Market Exchange. The money was in the value of the stock of the company being listed (bought and sold) on the Exchange. When the bottom fell out of the Market, the people who had invested money in the Market and could not sell it, never got it back. So the simple answer is that the money just dissappeared!! Those stocks that survived the crash, and those investors who held on to the stocks they owned, may have been able to sell those stocks later on as the Stock Exchange was allowed to open under regulation by the government. If I company did not survive the crash and was never listed on the Exchange again, those investors never got any money back.
Who was involved in the stock market crash of 1929?
Business people who bought, sold, & invested in stocks were surprised when the night before they were fairly rich, but the next day they became poor since the stock market crashed & they lost all their money.Hope this helps! :P
What is the definition of the stock exchange in social studies?
The stock exchange is a marketplace where buyers and sellers come together to trade shares of publicly-listed companies. It provides a platform for investors to buy and sell stocks, bonds, and other securities. Through the stock exchange, companies can raise capital by selling shares, and investors can profit from the fluctuations in the value of those shares.
How can Great Depression be traced in part to American investment in the stock market?
Investors borrowed money to buy rising stocks, but could not pay it back once the stock prices fell.
How individual investors likely to be affected by institutional investors?
Individual investors may have to pay more for stocks because institutional investors are bidding the prices up. This can make it hard for individual investors to have a sizable portfolio.
How much money do stock investors make in a year?
The amount of money made by stock investors depends on how much they have invested and how much gain they receive from these stocks. Also how much dividends their stocks give.
What is firm that specializes in buying and selling stocks for individual investors called?
a brokerage firm!
How individual investors are affected by institutional investors?
Institutional investors have more money and access to company managements. So they can buy early and sell early. Individual investors usually buy only after the institutions have jacked up the price. Then they are left holding high priced stocks when the institutions move out.
Why should companies pay dividends to his investors?
When you hold a share of a company, you are an investor in the company. You have invested your money in the company and it is the prime goal of the company's management to ensure that they earn sufficient revenue and profit for you "the investor" who has invested in the company. Ideally speaking, shareholders can be considered as owners of the company and the managers can be considered as employees working for the company. So whenever the company is making good business & profits, it is their responsibility to share their profit with the investors. This would motivate the existing investors to stay invested and new investors to buy the company's stocks.
Meaning of brokers in trading system?
A broker is a certified, licensed individual who carries out trade orders for investors. He or she buys or sells stocks or other securities on behalf of other investors.
How may U.S. investors be said to be attracted by foreign stocks?
More than ever before, U.S. investors poured money into foreign stocks during the 1990s, with over $1.4 trillion worth of foreign stocks being traded in 1997 alone.
What is a typical day of a stockbroker?
Stockbrokers mostly talk to their investors throughout the day. When they are not selling stocks to investors, they are researching stocks to invest in.
What are the aims and objectives of mutual funds?
The main aims of are MF is: # To provide exposure to stock market instruments to the common man who does not have the time or the skills required to invest in them # To maximize the wealth of the investors who have trusted them and invested in them # To attain a profit out of investing in stocks using the investments done by investors.
What did Bill Gates do for community activities?
he invested stocks
What are some good stocks to buy for new investors?
There are a lot of good stocks to invest in for new investors. Some of these stocks include; airlines, distributors, oil, gas and consumable fuel, software, automobiles, restaurants and hotels.
What became of silco investors corp. stocks. are they worth anything?
are silco stocks still worth anything
