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people didn't have any mony to spend, or they were afraid to spend what money did hav

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Giles Wiegand

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Q: Why did business come to halt after the stock market crash?
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How did the stock market crash?

A stock market crash is a sudden dramatic loss of value of shares of stock in corporations. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles such as the dot-com boom.The most famous crash, the Stock Market Crash of 1929, started on October 24, 1929 (known as Black Thursday), when the Dow Jones Industrial Average dropped 50%. This event preceded the Great Depression. The succeeding years saw the Dow Jones drop a total of over 85%. Richard Armour, in his satirical American history book It All Started With Columbus, remarked that the 1929 crash occurred "near the corner of Dun and Bradstreet".There was also a crash or "adjustment" on Monday October 19, 1987, known in financial circles as Black Monday, when the Dow Jones lost 22% of its value in one day, bringing to an end a five-year bull run. The FTSE 100 Index lost 10.8% on that Monday and a further 12.2% the following day. The pattern was repeated across the world.The stock market downturn of 2002 was part of a larger bear market and a Dot-com stock market bubble as well as Enron corruption that took the NASDAQ 75% from its highs and broader indices down 30%.Stock Market CrashDuring the 1920s, people invested in the Stock Market, hoping to make a profit on their investments. At the time, there was no supervision or government regulation of the Stock Market. By the end of the decade, prices of shares on the market reflected nothing more than the willingness of investors to pay those prices. Everyone expected the market to continue to rise. However, economic problems had already developed that would lead to the crash of the market. People invested in companies that were not economically sound. Businesses that appeared healthy had large inventories and could not sell enough of their products to justify the price of the stock on the market. Stock brokers gave loans, called margin buying, to people to invest in the stock market. When the brokers began to demand those margin payments, the investors did not have the money. There was over speculation by just about all the investors. At the time, even banks were permitted to invest customer's savings in the stock market. The market began to rise and fall in the fall of 1929. On October 24, known as Black Thursday, a record 13 million shares changed hands and the value of the stocks collapsed. On Tuesday, October 29, panic had set in and speculators dumped over 16 million shares on the market. But, there were no buyers for those shares. The "crash" on Tuesday created a paper loss of $30 Billion. AnswerThe actual stock market crash happened on what they call "Black Thursday" in 1929 (although there had been other critical and equally black days before that particular Thursday). At the time the stock market had absolutely no political oversight by any government department like we now have with the Securities and Exchange Commission (SEC), and stock manipulation by the big players was rampant and often ill-concealed. Small (and I mean the "ordinary working folk" started to believe that they too could buy stock, ride the coattails of the big financiers, and cash out before a stock bust. You have to remember that this was at the end of a decade of the most rampant and conspicuous prosperity and consumerism; it was (although nobody new it at the time) the end of The Jazz Age and nobody thought the good times could, should, or ever would, come to an end. The small-time players' problems started because they were allowed to buy stock with just 10 percent down; what is called buying on a margin. But, when a stock inevitably tanks as the big manipulators feel they have driven a stock as high as they can, the little guys have to come up with money or they lose the stock. And the money they put in. Some of the BIG players lost money, of course, but comparatively few of them were wiped out as the small players were. Mostly this was because they were all in on the insider dealing, and the stock the little fish was buying was stock that had been dumped by the big players who were, by now, manipulating another stock to the stratosphere. A few of them did bust of course, and a few of them took there own lives although precious few of them actually rained down from upper-floor windows as is popularly believed. That's the short answer to WHAT. The WHY is much more complex, and you'd be hard pressed to find an economist who could tell you exactly why. A good, short and easy to read paperback (considering the subject is economics) to get hold of from Ebay or Amazon or anywhere else is from the great Harvard economist John Kenneth Galbraith: "The Great Crash of 1929" published by Avon Books. Even Galbraith cannot point to a specific single reason for the crash, but there was plenty of blame to go around.


If a stock price goes down to zero can it come back up?

The stock could go back up as long as the company is still in business, or is sold or bought by a another business or corporation, otherwise no.


Where do the terms bull market and bear market come from?

A Bull market signifies a stock market situation where investors are beaming with confidence and the price of stocks and the market index is going up consistently. Such a solid rise in market indices is compared to the uncontrolled running of a raging bull and hence the term BULL market. A Bear market signifies a stock market situation where investors are very cautious and are not willing to buy new shares and are considering liquidating their holdings. The market is either flat or going down consistently. Such a situation is compared to the grip or hug of a bear which is considered very difficult to break and hence the term BEAR market.


Who coined the word "ecommerce" or when did it first come into use?

There is no particular person that coined this certain term. However, there term was used in the early 1980's as a stock market term and was used ever since.


Correlation between fii and stock prices?

both of them are positively correlated, as we can witnessed with 2008 scenario, as FII`s keep pumping the money in Indian stock market our sensex sores to 20000, and with current financial meltdown FII starts withdrawing money which forces the OVERVALUED stock to come to their actual worth price and let sensex to drop to mere 9000

Related questions

Why did business come to a halt after the stock market crash?

people didn't have any mony to spend, or they were afraid to spend what money did hav


What are stock quotes?

Stock quotes are prices that are of value in the stock market. It will depend on the daily activities of the business day. The stock market also depend on how much the consumer. The stock market can go up one day, then come down in a few seconds.


What's a good website for stock market game?

There are several good websites for the stock market. Some that come to mind immediately are "The Stock Market Game", Virtual stock exchange, wallstreet survivor and market place simulation.


When is the stock market coming back?

I'm expecting the stock market to come back and recover some time in 2023.


How did the stock market crash?

A stock market crash is a sudden dramatic loss of value of shares of stock in corporations. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles such as the dot-com boom.The most famous crash, the Stock Market Crash of 1929, started on October 24, 1929 (known as Black Thursday), when the Dow Jones Industrial Average dropped 50%. This event preceded the Great Depression. The succeeding years saw the Dow Jones drop a total of over 85%. Richard Armour, in his satirical American history book It All Started With Columbus, remarked that the 1929 crash occurred "near the corner of Dun and Bradstreet".There was also a crash or "adjustment" on Monday October 19, 1987, known in financial circles as Black Monday, when the Dow Jones lost 22% of its value in one day, bringing to an end a five-year bull run. The FTSE 100 Index lost 10.8% on that Monday and a further 12.2% the following day. The pattern was repeated across the world.The stock market downturn of 2002 was part of a larger bear market and a Dot-com stock market bubble as well as Enron corruption that took the NASDAQ 75% from its highs and broader indices down 30%.Stock Market CrashDuring the 1920s, people invested in the Stock Market, hoping to make a profit on their investments. At the time, there was no supervision or government regulation of the Stock Market. By the end of the decade, prices of shares on the market reflected nothing more than the willingness of investors to pay those prices. Everyone expected the market to continue to rise. However, economic problems had already developed that would lead to the crash of the market. People invested in companies that were not economically sound. Businesses that appeared healthy had large inventories and could not sell enough of their products to justify the price of the stock on the market. Stock brokers gave loans, called margin buying, to people to invest in the stock market. When the brokers began to demand those margin payments, the investors did not have the money. There was over speculation by just about all the investors. At the time, even banks were permitted to invest customer's savings in the stock market. The market began to rise and fall in the fall of 1929. On October 24, known as Black Thursday, a record 13 million shares changed hands and the value of the stocks collapsed. On Tuesday, October 29, panic had set in and speculators dumped over 16 million shares on the market. But, there were no buyers for those shares. The "crash" on Tuesday created a paper loss of $30 Billion. AnswerThe actual stock market crash happened on what they call "Black Thursday" in 1929 (although there had been other critical and equally black days before that particular Thursday). At the time the stock market had absolutely no political oversight by any government department like we now have with the Securities and Exchange Commission (SEC), and stock manipulation by the big players was rampant and often ill-concealed. Small (and I mean the "ordinary working folk" started to believe that they too could buy stock, ride the coattails of the big financiers, and cash out before a stock bust. You have to remember that this was at the end of a decade of the most rampant and conspicuous prosperity and consumerism; it was (although nobody new it at the time) the end of The Jazz Age and nobody thought the good times could, should, or ever would, come to an end. The small-time players' problems started because they were allowed to buy stock with just 10 percent down; what is called buying on a margin. But, when a stock inevitably tanks as the big manipulators feel they have driven a stock as high as they can, the little guys have to come up with money or they lose the stock. And the money they put in. Some of the BIG players lost money, of course, but comparatively few of them were wiped out as the small players were. Mostly this was because they were all in on the insider dealing, and the stock the little fish was buying was stock that had been dumped by the big players who were, by now, manipulating another stock to the stratosphere. A few of them did bust of course, and a few of them took there own lives although precious few of them actually rained down from upper-floor windows as is popularly believed. That's the short answer to WHAT. The WHY is much more complex, and you'd be hard pressed to find an economist who could tell you exactly why. A good, short and easy to read paperback (considering the subject is economics) to get hold of from Ebay or Amazon or anywhere else is from the great Harvard economist John Kenneth Galbraith: "The Great Crash of 1929" published by Avon Books. Even Galbraith cannot point to a specific single reason for the crash, but there was plenty of blame to go around.


If a stock price goes down to zero can it come back up?

The stock could go back up as long as the company is still in business, or is sold or bought by a another business or corporation, otherwise no.


What is the relationship between the stock market index and individual company share prices?

it is a kind of disjoint parallel or direct relationship. When the stock market index goes up, the stock prices go up and when the index goes down the individual company stock prices come down. But there may be companies whose prices are going in the opposite direction as compared to the stock market. Just because the stock market is going up it doesn't mean that all company stock prices are going up.The stock price of each and every company is governed by a variety of factors and may move in either direction irrespective of how the overall market is going.


What name does dixons and currys shares come under on stock market?

Dixons, Currys and PC World all come under DSGi Plc.


Where can someone get information about buying on the stock market?

You can get information about buying on the stock market on a lot of different sites on the internet. Just doing a search on google will come up with a lot of helpful websites. You could also get information from friends who have experience with the stock market or even ask a simple question on an ask site like Yahoo answers.


Why is the stock market declining?

Due to lack of liquidity in the economy most people are short of cash. So they have started selling their stock holdings to raise cash.Since there are more people selling than buying, the prices of stocks have come down which in turn has caused the stock market to decline.


What is goods in ward?

The term is "Goods Inward". This term means in a business where goods for that business come in or delivered to (as in a department name) for instance into a warehouse or holding area. In Inventory systems its means stock items brought into the business and therefore into the business's inventory system (normally a computerised database) Basically stock arriving in the business


Sources of conflict in international business?

There are various things which can cause conflict in international business. For example, it can come from competing with another company out of the market.