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They went down because everyone wanted their money when the banks were very poor.
Answer:
Many people, including many in the general public were buying stocks on "margin". Everyone thought the stock market was a sure bet to make money. If the stocks value went down the people had to come up with more cash or sell the stock. Others tried to benefit by pushing the stocks lower. Since many people had large parts of savings in the Stock Market many lost their savings. Many businesses (including banks) had their excess cash invested in the market. When it "crashed", many people lost everything, banks didn't have money to cover all of their deposits and failed, businesses lost their operating capital, their customers lost their money and everything came tumbling down.
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Why Stock prices first began to decline late 1929 because?
Stock prices began to decline in late 1929 primarily due to a combination of speculative excess, overvaluation, and economic instability. Investors, who had heavily speculated on rising prices, started to panic as signs of an economic downturn emerged, leading to widespread selling. The market's volatility was exacerbated by a lack of regulatory oversight and the interconnectedness of financial institutions, which heightened fears about the economy's resilience. This culminated in the stock market crash of October 1929, marking the beginning of the Great Depression.
What was the character of the stock market in the late 1920s How did speculations cause the market to crash?
In the late 1920s, the stock market experienced rapid growth, characterized by rampant speculation and soaring stock prices, often detached from the underlying economic fundamentals. Many investors engaged in buying on margin, borrowing money to purchase stocks, which heightened risk and inflated values further. As confidence peaked, any negative news triggered panic selling, leading to a sharp decline. This culminated in the stock market crash of October 1929, as the unsustainable speculative bubble burst, resulting in massive financial losses and contributing to the onset of the Great Depression.
What events led to the stock markets crash of october 1929?
The stock market crash of October 1929 was precipitated by a combination of speculative investments and over-leveraging, where many investors borrowed heavily to buy stocks. By late September 1929, stock prices had reached unsustainable highs, leading to a loss of confidence. On October 24, known as Black Thursday, panic selling began, and the market plummeted. The situation worsened with further declines on October 28 and 29, culminating in a catastrophic loss of wealth and the onset of the Great Depression.
Which expression best illustrates a value that played a role in the stock market crash of 1929?
The expression "irrational exuberance" best illustrates a value that played a significant role in the stock market crash of 1929. This term reflects the excessive optimism and speculative fervor that characterized the stock market during the late 1920s, leading investors to inflate stock prices beyond their actual worth. When reality set in, and confidence faltered, it resulted in a rapid sell-off and the eventual market collapse.
What happened to stock prices before the late 1920's?
The stock market prices crashed after people kept trading things that they couldn't afford anymore, and others lost jobs and went out of business.
Why did stock prices first began to decline in late 1929's?
because stock brokers stopped marginloans ,company earnings declined,several companies went bankrupt and investors began to sell their stocks.
Stock market crash of 1929 was know as?
Stock market crash of 1929 was also known as the "Great Crash". This was begining of The Great Depression.It was called Black Thursday, Black Monday, or Black Tuesday depending on which day you are talking about. Black Thursday was October 24, the actual day the stock market crashed. Black Monday and Black Tuesday were the downturn on October 28 and 29, that caused the alarm. The stock market crash continued for another month.
What happened to stock prices before the late 1920's?
The stock market prices crashed after people kept trading things that they couldn't afford anymore, and others lost jobs and went out of business.
When the Dow Jones Industrial Average began to drop sharply in late October 1929?
Investors raced to get their money out of the stock market.
What happened when the Dow Jones Industrial Average began to drop sharply in late October 1929?
investors raced to get their money out of the stock market
Worst day in stock market history?
Black Tuesday, October 29, 1929, usually marks the point where the Roaring 20's ended and the Great Depression started. The stock market continued to fall until bottoming out in July of 1932.In just two months, September and October OF 1929, wall street had lost 40 percent of its value.This is the grand daddy of all bear markets. Investors lost 86% of their money over this 813 day beast. This stock market crash combined with the 1929 crash, makes up the Great Depression.The depression originated in the U.S., starting with the fall in stock prices that began around September 4, 1929 and the biggest bear market ever lasted until the late 1930s or early 1940s.
The lessons of late Han China and late Roman Empire are that the decline of a civilization?
The lesson is that the decline of a civilization is not simply the result of attack by outside invaders.
How did the wall street led to the great depression?
The Wall Street Crash of 1929 was a pivotal event that triggered the Great Depression. Excessive speculation and the widespread use of margin buying led to inflated stock prices, creating a bubble that burst in late October 1929. As stock values plummeted, investors lost confidence, leading to massive sell-offs, bank failures, and a drastic reduction in consumer spending. This economic downturn resulted in widespread unemployment and a severe contraction in the economy, marking the onset of the Great Depression.
Why did U.S. sugar prices fall at the end of the 1990s?
The late 1990s saw a sharp decline in U.S. sugar prices, blamed by cane sugar producers on increased sugar imports from Mexico under the North American Free Trade Agreement (NAFTA).
Why were African-Americans particularly harmed when the stock market crashed?
On October 29, 1929, the United States stock market crashed in an event known as Black Tuesday. This began a chain of events that led to the Great Depression, a 10-year economic slump that affected all industrialized countries in the world. The 1920s had been a time of wealth and excess in the United States of America, and stock prices had risen to unprecedented levels. This encouraged many people to speculate that the market would continue to rise. Investors borrowed money to buy more stocks. As real estate values declined during the late 1920s, the stock market also weakened. When stock prices started to slide on October 29, people rushed to sell their stock and get out of the market, which drove prices down even further. This cycle led to more and more “panic selling,” until the stock market fell to its lowest point in history.
When did the Silk Road decline?
in the late 15th-early 16th centuries, the Silk Road fell into decline
Who was president in the late 1920?
Calvin Coolidge (1923-1929) then Herbert Hoover (1929-1933).
