The Great Depression : The Stock Market Crash Essay

1946 Words Dec 8th, 2015 null Page
There were many factors that led to the Great Depression like the stock market crash, bank runs, the dust bowl, and the new deal. The Great Depression was an economic downturn between 1929-1939. Many people lost their jobs and did not have enough money to keep a roof over their head. Only the rich could manage while the poor suffered. Both the rich and poor were scared, and the rich even hid their money so no one could take it from them. The whole economy was panicking so people just stopped spending their money unless it was something really important. One of the first things that led into the Great Depression was the stock market crash of 1929. Stocks are shares of a company that a person can buy. In the 1920s, the stock market went through one of the four business cycles, expansion. Many investors believed that the stock market would just keep going up that is why some people kept on investing. In the early October of 1929 stock prices began to decline and panic arose. “On October 24, 1929, the stock market bubble finally burst, as investors began dumping shares en masse. A record 12.9 million shares were traded that day, known as “Black Thursday.” (The Great Depression). Then in October 29 about 16 million shares were traded because the stock prices collapsed. There were billions of dollars lost and many suffered huge losses. “The crash itself, of course, depleted American investment funds even more, which further reduced the buying power of the European consumer,…

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