The extravagance of the Americans during the Boom years led to the Wall Street Stock Exchange crash.
America experienced a massive economic boom after World War l. There was an increased demand for goods and a rapid growth of farming and industry. Technological progress and consumer demand increase were key to Americas economic success. Businesses began to make huge profits which meant jobs were easier to find and were paid better. Society was affected resulting in women wearing make-up, shorter dresses and smoking and drinking in public. The motor industry grew rapidly. In order to have the American dream, they bought and sold shares on the margin
Due to all the successes, many Americans started investing in the stock market, buying shares in companies which they hoped would make them profit. In order to keep buying and selling shares, many people took out loans and invested all their savings. They thought that the share prices would go up, encouraging them to buy more shares than …show more content…
Speculators were warned that this false prosperity would not last but they weren't bothered. In 1929, share prices began to drop and mayhem had begun. Investors started doubting the market causing them to sell their shares while prices were still high. Thus causing a drop in share prices resulting in more people selling their shares when they saw this, resulting in share prices to decrease even further. Shareholders dumped 13 million shares on 24 October 1929. Speculators who had bought shares on the margin were not able to pay back the banks forcing them to sell all of their possessions to get out of debt.
In October 1929, the price of shares on the Wall Street Stock Exchange crashed causing an uproar and was a trigger that led to the collapse of the American economy and a short term cause for the Great Depression. The crash had a huge impact on Americas
America experienced a massive economic boom after World War l. There was an increased demand for goods and a rapid growth of farming and industry. Technological progress and consumer demand increase were key to Americas economic success. Businesses began to make huge profits which meant jobs were easier to find and were paid better. Society was affected resulting in women wearing make-up, shorter dresses and smoking and drinking in public. The motor industry grew rapidly. In order to have the American dream, they bought and sold shares on the margin
Due to all the successes, many Americans started investing in the stock market, buying shares in companies which they hoped would make them profit. In order to keep buying and selling shares, many people took out loans and invested all their savings. They thought that the share prices would go up, encouraging them to buy more shares than …show more content…
Speculators were warned that this false prosperity would not last but they weren't bothered. In 1929, share prices began to drop and mayhem had begun. Investors started doubting the market causing them to sell their shares while prices were still high. Thus causing a drop in share prices resulting in more people selling their shares when they saw this, resulting in share prices to decrease even further. Shareholders dumped 13 million shares on 24 October 1929. Speculators who had bought shares on the margin were not able to pay back the banks forcing them to sell all of their possessions to get out of debt.
In October 1929, the price of shares on the Wall Street Stock Exchange crashed causing an uproar and was a trigger that led to the collapse of the American economy and a short term cause for the Great Depression. The crash had a huge impact on Americas