How Did The Stock Market Crash Lead To The Great Depression
The 1920’s was a prosperous time for lots of Americans which ended with The Great Depression. The Stock Market Crash and Bank Failures led to the Great Depression. The Stock Market Crash of 1929 caused banks to fail and was a crucial part of leading to the economic depression. The stock market started to decline as companies told the public inaccurate information about the growth of companies leading for more people to invest in companies leading the companies to believe they were growing even more. This loop caused the stock market to start declining slowly at first. Then, on October 24 the stock market had a major decline, investors traded 12,894,650 shares. Companies tried to stabilize the markets by buying up large amounts of stocks.
This worked to prop up the decline a bit, but soon after the market suffered another severe decline. On Tuesday, October 29th the stock market crumbled and 16,410,030 shares were traded on the New York Stock Exchange. Those events caused billions of dollars to be lost and people panicked for their money leading to many bank runs and bank failures. Banks Failing was another crucial part of why The Great Depression hit people so hard. Banks started to fail shortly after the stock market crash
This worked to prop up the decline a bit, but soon after the market suffered another severe decline. On Tuesday, October 29th the stock market crumbled and 16,410,030 shares were traded on the New York Stock Exchange. Those events caused billions of dollars to be lost and people panicked for their money leading to many bank runs and bank failures. Banks Failing was another crucial part of why The Great Depression hit people so hard. Banks started to fail shortly after the stock market crash