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There are several reasons for the Stock Market crash. Stock manipulation, insider trading, loose margin requirements, media hype, public buying frenzy, very little trading regulation and no corporate reporting accountability.
With no regulations on corporations the public had no idea what was really going on inside companies that said one thing and did another.
Insider trading allowed the privileged few to take advantage of those that did have access to vital information.
Media hype causes the public to react in that are not always in their best interest
and sometime self serving to the publishers themselves.
After the unraveling of the great house of cards known as the stock market at the end of 1929, the general public is left in disarray to clean up the financial mess left behind from the insider manipulators and those that felt they needed to give their last dime to cover margin calls on over valued stock they that purchased. The public was left with massive mistrust of businesses, banks and corporate America all together. The media hyped up the the worst possible scenarios.
What money people had was horded and kept out of circulation, compounding the situation. With very little money in circulation businesses had no choice but to lay off workers or close down altogether....making maters worse.
Wiki User
∙ 12y ago
Wiki User
∙ 11y agoBecause billions of dollars were lost, whole fortunes were wiped out in hours, many speculators who had bought stock on margin lost everything they had, and it caused contractions towards the money supply in the economy.
Wiki User
∙ 8y agoThe real business caused the stock market crash. Like if the oil price low in the market like what happen in recent weeks, then the O&G company revenue will also drop. Because of this, many people will sell their O&G company stocks. Then the market rule will play here. If the sellers are more than the buyers, then the price will drop
Wiki User
∙ 9y agoThe stock market crash caused unemployment because many companies could not raise finances and had to close down or lay off workers. Many defaulters also caused banks to collapse.
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What are two effects or the great crash?
Incomes rose and unemployment dropped
In point form lists the causes of the Great Depression?
Stock Market Crash Drought Plauge of locust Unemployment
What was the main cause of the main cause of the great depression?
The main cause to the start of the great depression was the Wall Street Crash in 1929.
What were two of the causes of the great depression?
There were several things that culminated in the Great Depression. Primary among them are the stock market crash of 1929 and the unequal distribution of wealth.
Which was a direct cause of the Great Depression?
the stock market crash
What country did the great depression effect?
the great depression affected just about every country by U.S stock market crashing cause a lot of other shared and stock markets to crash
What was the main cause to the start of the Great Depression?
The main cause to the start of the great depression was the Wall Street Crash in 1929.
Did pearl harbor cause the Great Depression?
No, The Great Depression was caused by the Wall Street stock market crash in 1929. Pearl Harbor happened in 1941, and caused America to declare war on Japan.
Did the wall street crash cause the Great Depression?
no there were many other long term cause which helped cause the great depression. the wall street crash was a cataylst that sped up the depression. if the wall street crash never happened the long term cause would have cause the depression on their own eg overproduction, tariffs etc
Where when and why did the Great Depression begin?
In October of 1929 with the crash of the stock market.
What were the goals of America in the 1930s?
The goals of America in the 1930s were to get the American citizens out of unemployment and starting to fend for their families and recover from the great deppression.
What were the immediate causes of the Great Depression?
The immediate cause of the Great Depression was the stock market crash of 1929, also known as Black Tuesday.
