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Just keep in mind that the Stock Market is full of fear and greed. When people as group start to feel one of this feelings, they don't think clearly.

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What practice in large part caused the stock market to crash causing the great depression?

people overspeculating on stocks, using borrowed money that they couldn't repay


What practice in large part caused the stock market crash sparking the Great Depression of the 1930?

people overspeculating on stocks, using borrowed money that they couldn't repay


How can Great Depression be traced in part to American investment in the stock market?

Investors borrowed money to buy rising stocks, but could not pay it back once the stock prices fell.


How many stock market crashes were there?

That is entirely subjective. There is no real definition for a sock market crash and is no more than an idiom for "moved down really quickly to the bottom way more than we are comfortable with". Some consider the Great Depression the only real stock market crash. The crash of 1929 resulted in a lag in economic growth that lasted nearly 20 years. Others consider any recession a crash, by this definition there has been 46 of these crashes in the US. 1797; 1802; 1807; 1812; 1815; 1822; 1825; 1828; 1833; 1836; 1839; 1845; 1847; 1853; 1857; 1860; 1865; 1869; 1873; 1882; 1887; 1890; 1893; 1896; 1899; 1902; 1907; 1910; 1913; 1918; 1920; 1923; 1926; 1929; 1937; 1945; 1949; 1953; 1958; 1960; 1969; 1973; 1980; 1981; 1990; 2001; 2007; The next is expected in 2013 and has already been dubbed "The Fiscal Cliff" by the media outlets. Also, the Dow Jones Industrial suspends trading if it drops to quickly. This is called a circuit breaker and has only been done once on October 27, 1997 when it dropped 7.2% in a single day. It has only dropped more than 10% in a single day three times in history.


How was speculation bad for the stock market?

Speculation per se has always been a part of stock market activity. People invest, hoping for a personal gain. The money they invest can be used by companies to expand operations, provide goods and services, hire people. This is normal economics.Absence of regulation of the stock market leads to more and more risky investment, money managers manipulating prices to trick others into buying and selling unwisely so the managers themselves can get out at the right time with the maximum profit. That is bad for the economy.

Related Questions

Who were the first individuals to be hit hard by the stock market crash?

The first individuals hit hard by the stock market crash of 1929 were primarily investors and speculators who had heavily invested in stocks, often using borrowed money. Many middle-class Americans, who had taken part in the stock market boom, saw their life savings wiped out as stock prices plummeted. Additionally, those working in industries closely tied to the stock market, such as banking and finance, faced immediate job losses and financial instability. The crash set off a broader economic downturn that ultimately affected millions.


What practice in large part caused the stock market to crash causing the great depression?

people overspeculating on stocks, using borrowed money that they couldn't repay


What led social security act?

the stock market crash which led older men and or women to lose their jobs, it was fdr's proposal to start the ssa as a part of his new deal.


Is the stock market a part of the capital market?

The stock market is part of the Capital Market. The Capital Market also includes the bond market. The U.S. Securities and Exchange Commission (SEC)protects investors in the capital market from fraud.


Does England have a stock market?

The largest part of the U.K stock market is the London Stock Exchange (LSE). Its Alternative Investment Market (AIM) corresponds, very loosely, to the U.S. NASDAQ market.


What year did the stockmarket crash?

The stock market has experienced several significant crashes throughout history. The most well-known stock market crash in the United States is the one that occurred in 1929, often referred to as the "Stock Market Crash of 1929" or the "Great Crash." It marked the beginning of the Great Depression, a severe worldwide economic downturn. However, it's important to note that the stock market has experienced other crashes and significant downturns at different times. Some notable examples include: Black Monday (1987): On October 19, 1987, the stock market experienced a sharp decline, with the Dow Jones Industrial Average dropping by more than 22% in a single day. This event is commonly referred to as "Black Monday." Dot-com Bubble Burst (2000): In the late 1990s, there was a speculative bubble in technology stocks, driven by the growth of internet-based companies. The bubble burst in early 2000, resulting in a significant decline in the stock market, particularly in technology-related stocks. Global Financial Crisis (2008): The financial crisis of 2008 was triggered by the collapse of Lehman Brothers and the subsequent turmoil in the banking and housing sectors. This event led to a severe stock market decline and a global recession. It's worth noting that stock market downturns are a natural part of market cycles, and market fluctuations can occur at any time. Understanding the history of market crashes can provide insights into market dynamics and the importance of risk management and diversification in investment strategies.


What practice in large part caused the stock market crash sparking the Great Depression of the 1930?

people overspeculating on stocks, using borrowed money that they couldn't repay


Is debt market a part of stock market?

The debt market is the market where debt instruments are traded. Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages. The equity market (often referred to as the stock market) is the market for trading equity instruments. BYSOS - India's Foremost Online Stock Fantasy Gaming Platform. bysos.in


What is the condition of the Indian stock market?

India being an underdeveloped country their stock market will have their ups and downs. However due in large part to Foreign investors the india stock market has seen a 125% increase in stock prices over the past 24 months. Stock prices will most likely continue to grow another 20% by the end of 2011.


What is share in stock market?

Stocks can be categorized based on the country where the company is domiciled. For example, Reliance Industries Ltd and Tata Consultancy Services are the companies that are based in India. And get traded on two major stock exchanges in India. Bombay Stock Exchange India (BSE) and National Stock Exchange India (NSE). That’s why they are considered as part of the Indian Stock Market.


Are insurance companies part of capital market?

Yes, The insurance companies are parting their money in stock/bond market,collected under Unit linked insurance policies and are therefore part of the capital market, no doubt about it.


What event happened on october 29 1992 called black Tuesday?

Black Tuesday, which occurred on October 29, 1992, was a significant stock market crash in the United States, marking a sharp decline in stock prices. This event was part of a larger economic downturn and was characterized by a sudden sell-off, leading to substantial losses for investors. The crash highlighted vulnerabilities in the financial system and contributed to ongoing economic uncertainty during the early 1990s recession.