Financial panic of 1893
During the 1920s, agriculture wasn't doing so well. Farmers were having a hard time recovering from WWI because they had planted a surplus of food and suddenly had no market at the end of the war. And in 1929, the Stock Market crash occurred and America went into a downward spiral into the Great Depression, ending the economic good times of the 1920s.
Stocks fluctuate in value due to various factors such as changes in company performance, economic conditions, market sentiment, and external events. These factors can impact investor confidence and lead to buying or selling of stocks, causing their prices to rise or fall.
The stock market began to drop sharply in late October 1929, culminating in the infamous crash on October 29, known as Black Tuesday. This decline was driven by rampant speculation, overvaluation of stocks, and a lack of investor confidence, leading to panic selling. The crash marked the beginning of the Great Depression, a severe economic downturn that affected economies worldwide throughout the 1930s. The event highlighted the vulnerabilities in the financial system and prompted significant regulatory changes in the years that followed.
A bull phase refers to a economic scenario with booming investor confidence and surplus liquidity as a result of which everyone is buying shares and the prices of stocks are going up. It is termed as a bull phase because there is control/limit on the amount to which the prices go up. It is uncontrollable like the run of a raging bull. A bear phase refers to a economic scenario with diminishing investor confidence and lack of liquidity as a result of which everyone is selling their stocks. the prices of stocks come down crashing.
till stocks last
thirty
During a depression, the best investments to make are typically in safe assets like government bonds, high-quality stocks, and real estate. These investments have the potential to provide stable returns and preserve wealth during economic downturns.
the fastest recovering stocks were the gold related stocks such as homestake mining stocks. in the related links box below, I posted a link that will explain to you how the stocks were affected during the first great drepression.
thirty
The Stock Market Crash of 1929 did not cause the Great Depression, it just signaled the start of the Depression. The Stock Market had continued to climb during the Twenties, but the economic problems that accumulated over the decade and were not recognized by the majority of economist and stock brokers, eventually caused the price of stocks and the confidence in the economy to crash.
If it goes on for a long time and no one buys a lot of stocks, it could eventually turn into a depression. Save
It caused a nation wide depression followed by arronias hobos Actually, with everyone investing their stocks and what not in the..stocks, they lost a crap load of money and pretty much got screwed.
When stock prices fell, people did not have the money to cover their losses.
Many stocks had fallen so much in value that it would cost more in commissions to sell than they were worth. Also many of the companies had gone bankrupt and their stocks were now nothing more than paper.
Yes, the stock market crash did begin the great depression but it wasn't the only cause. The depression was also due to the tariffs/war debt policies, factories producing more than consumers demanded, farm sector crisis, easy credit, and unequal distribution of income. The stock market crash just tipped it all off.
Profits were down because customers had no money.
excessive borrowing to buy stocks leading to the Stock Market crash of 1929