The Causes And Effects Of The Stock Market Crash Of 1929

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The Stock Market was one of the top producers of the time period during the 1920s. The Market held many shares which were worth well over a million dollars apiece. In the spring of 1929 it started falling slowly up until the fall. In the fall of 1929 the Stock Market hit its all time low with a major crash. There were many causes and effects of the Stock Market Crash of 1929, but the aftermath known as Black Tuesday stunned the Wall Street investors which led to the Great Depression in the 1930s. The Stock Market was the top dog of the income factor for the United States in the 1920s. It started falling in the late spring and early summer of 1929. Banks started loaning out too much money and were not getting their money back from the loans that they were putting out. People had to pay between 10-20% for them to get around 80-90% of the money that they needed. Where the citizens of the US were drawing out too much money the banks couldn’t fund the Stock Market when it started falling which led to the downfall later in the year. The Stock Market was so large at one time …show more content…
There were some that held shares that were worth too much for them to pay for were committing suicide because they could not find anyone to take and sell their shares to. Between the years 1923 and 1939 almost 5000 banks had closed down because they were becoming bankrupt over the people pulling out money to take and buy shares with. There were too many shares in 1929 for anybody to take and gain any money off of sales. What little money they did make was going towards the banks where they took and borrowed so much money (“What caused….”). Even though the crash was in the United States, it was afflicting a few other places. When the crash came in the United States it hurt Canada. Some researchers say that it was because of the Stock Market being so far up north in the United States(“Great

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