Stock Market Dbq

On October 24, 1929, the New York World reported, “In a society built largely on confidence, with real wealth expressed more or less inaccurately by pieces of paper, the entire fabric of economic stability threatened to come toppling down,” (Blumenthal 14). The stock market crash of 1929 was the spark to America’s Great Depression, when weaknesses in both international and domestic sides of the economy faulted. The stock market is defined as a place that sells stocks. A stock is overall ownership of all the companies. Shares are the owner of a divided portion of a company. These people who share are shareholders and are part owners of a company. Investors place money into the stockmarket by buying stocks (Furgang 6). The site where most stock buying is selling of stocks are done in the United States are done on Wall Street, known as New York Exchange; the financial center of the United States economy (Furgang 8). The opening of the New York Stock …show more content…
These included the Banking Act of 1933, the Federal Deposit Insurance Corporation, and the Social Security Act. The Banking Act of 1933 established deposit insurance in the United States, prohibiting banks from dealing in securities, therefore eliminating banking panics after 1933 (Great Depression). The Federal Deposit Insurance Corporation, also called F.D.I.C., separated commercial and investment banking, as well as insuring deposits, maintaining public confidence and stability in the financial system (O’Sullivan and Keuchel 184). F.D.I.C. guaranteed each depositor to be insured up to $250,000 per insured bank (O’Sullivan and Keuchel 263). The Social Security Legislation gave older people’s (people over age sixty) jobs for young individuals or workers with the advantage of receiving (two hundred dollars) money every month and insurance that are financed by tax upon employers/employees (O’Sullivan and Keuchel