How Did The Stock Market Crash Affect Canada

The 1929 stock market crash affected mainly people in Canada and the US when share prices on the New York Stock Exchange completely collapsed and Stocks lost 13% of their value, and in 1932 and 1933 they went, down about 80% from their highest value. So whoever invested in stocks lost all their money, and it was considered the beginning of the Great Depression. By the end of the stock market crash, $16 billion had been lost from New York stocks. In addition, many banks had invested their deposits in the stock market, causing these banks to lose their depositors’ savings as stocks dropped. Even people who did not invest in shares became broke as $140 billion of depositor money was lost and 10,000 banks failed. The stock market crash had such a great
This quickened the market slide, and at about 11:00 am for 6 minutes the market broke down entirely and the prices of products like wheat went from $1.40 to $1.31. On Oct. 28, 1929, known as “Black Monday,” the market closed down 12.8%. The next day, “Black Tuesday,” many big American companies collapsed as their company stocks became worthless, this affected Canada because many branch plants had to be shut down, which led to an increase in unemployment. During the crash, Montreal which had an average of about 25,000 shares traded a day, went to over 400,000 shares and in New York, it was 13 million shares. On Monday the Toronto stock exchange lost one million dollars a minute. The significance the crash had to the time period was that the stock market crash was the sign of the beginning of the Great Depression where many people: lost their homes, lost their jobs, and ate anything they could find. The crash shaped Canada’s identity by making Canadians realize how important it was for financial balance which led to the creation of many government programs and it was what helped people through the next market