Why The Stock Market Crash Of 1929 Essay

1110 Words Oct 8th, 2016 5 Pages
HISTORY 1302 WRITING ASSIGNMENT Explain why the stock market crash of 1929 occurred and tell how it turned into a major Depression. Describe the major ways in which the Depression affected Americans. What did President Hoover and President Franklin D. Roosevelt do about the Depression?
Though the New York Stock Exchange was founded in 1817, its actual foundation was masterminded as far back as to 1792 when a group of merchants and stockbrokers entered into an agreement in Wall Street. In 1929 something spectacular happened. Prices of stock started to decline in the month of September and by the month of October a fall began and by the end of the same month about 12million shares were sold. Attempts to stabilize the market were made by investment companies and bankers, all to no avail as the market eventually went into a free fall. By October ending stock prices collapsed completely and in a single day about 16million shares were traded. Losses recorded were in billions of dollars; thousands of investors were affected, machines were slow to handle large volumes of commands and orders. Prices kept on dropping till the US found herself in the Great Depression. The Great depression has thus been described as a period “which lasted from 1929 to 1941, was a severe economic downturn caused by an overly-confident, over-extended stock market and a drought that struck the South.”(from…

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