The Stock Market Crash Of 1929 Essay example

1937 Words Mar 18th, 2016 8 Pages
Numerous Americans suffered through the Great Depression. The main contributing factor to this catastrophe was the Stock Market Crash of 1929. Many Americans had invested their money into stocks because they assumed that they would benefit and profit greatly from it. By owning a stock, the investors would officially own part of the company. Unfortunately, the value of the stocks gradually decreased, which eventually led to a multitude of people losing their money. People then began trying to sell their stocks for what was left of its worth, but not many were able to accomplish this (Foner 764). Furthermore, as this occurred many Americans began quickly drawing out their money from the banks before they lost it all, but the banks did not have their money since it experienced the same situation. Only a small portion of people actually received their money back, whereas the rest lost all their savings left in the bank (McCollom). In addition, Americans purchased bonds, in which the investor would loan the company a large amount of money with the assumption that in a few years their business would be both lucrative and productive along with the company eventually returning the investors money back. Since the companies did not improve and only worsened, their business was worth hardly anything and the company was essentially not able to pay back the loans they received from the bonds. This left many citizens in poverty (Foner 764). By October 28, 1929, the panic officially began…

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