0
During the 1920s many people invested in the Stock Market because they believed it would make them very wealthy. Due to the popularity of it, shares were very overvalued. When investors realized that the shares were overvalued they began to sell their shares. So many investors selling their shares and no-one wanting to buy them led to the prices falling.
Wiki User
∙ 7y ago
Wiki User
∙ 13y agoThere were several causes of decreased stock prices. One was allowing people to purchase stock on margin. A person would put up so much money and the stock broker would cover the rest of the cost. You paid the broker back when you sold. Many people did not investigate the companies in which they invested and many of those companies listed their wealth higher than it really was worth. As more people continued to buy, the prices of stock became artificially high. There was no government investigation or regulation of the stock market. Some companies that were listed did not even exist except on paper. As the market began to adjust itself, a wave of selling caused stock prices to decrease dramatically.
Wiki User
∙ 11y agothe stock dropped so quickly because there were no buyers. people lost fortunes just over night! *Trustable from 8th grade text book* hope this helps! GOOD LUCK!
Wiki User
∙ 11y agothe earnings of people dropped
Add your answer:
Earn +20 pts
Where when and why did the Great Depression begin?
In October of 1929 with the crash of 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 were food prices in 1929?
What was food prices in 1929
What years did the Great Depression occur?
In 1999 to 2000. Happened in the:1930's October 1929: STOCK PRICES FELL start of the depression 1929 to 1939
What event is often considered to be the starting point of the great depression?
(apex) black tuesday
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
Where when and why did the Great Depression begin?
In October of 1929 with the crash of the stock market.
What nickname was given on October 29 1929 when stock prices fell sharply?
The Wall Street crash.
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 were food prices in 1929?
What was food prices in 1929
What years did the Great Depression occur?
In 1999 to 2000. Happened in the:1930's October 1929: STOCK PRICES FELL start of the depression 1929 to 1939
How did most investors react to a sudden fall in stock prices in 1929?
They raced to sell their stocks
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 .
Why did stock prices fall in 1929?
The Stock Market Crash of 1929 devastated the economy and was a key factor in beginning the Great Depression in the United States. This period was also known as The Great Wall Street Crash of 1929 and Black Tuesday. Stock prices began falling when steel production went down, house construction slowed and car sales waned and people started to sell off their stock in mass numbers. This lead to Black Tuesday. On that day, there were so many orders to sell that the ticker quickly fell behind. People panicked, as they couldn't get rid of their stocks fast enough. Everyone was selling and nearly no one was buying, therefore stock prices collapsed.
When did the great deppression begin?
The Great Depression began with the Wall Street panic after the stock market crash in October of 1929. It ended in 1939.
What event is often considered to be the starting point of the great depression?
(apex) black tuesday
