Why Did The Stock Market Crash
Money has run the world and how it works for over a thousand years. There are several ways a person can use their money. For example, a person could spend it. Another way is to use money is to invest it to shares. Although the Stock Market Crash of 1929 was devastating to the United States of America, it opened the eyes of the civilians to what money can really do the nation. The stock market had become very popular in the 1920’s. It was organized in 1792 by a group of stockbrokers, people who arrange the sale of stocks, looking for a more efficient way to buy and sell stocks. The stock market was a way for businesses to get financial support to expand their facilities and workforce and to acquire materials to make into products that would
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But, the worse happened on October 24, 1929 or Black Thursday. The stock market took a downturn following this peek. As the stocks began to drop, investors who had their money in shares began to panic (Grant 17). Many investors attempted to sell their stock before the value dropped even lower. The market panic abated somewhat when Richard Whitney, vice president of the New York Stock Exchange, and other Wall Street executives attempted to halt the downturn by buying shares above the current market price. The infusion of the money proved to be only a temporary fix. Stocks continued to fall over the next week, then on October 28, 1929, Black Monday, stock values fell by thirteen percent. Three million shares were traded in the first half of the next day and the market lost another twelve percent that day. In total, the stock market lost twenty- five billion dollars or the equivalent of more than three hundred billion dollars in modern terms(Crash 1). Several different explanations have been given throughout the year on what cause the market to crash. The main debate is whether fundamental conditions or a speculation bubble drove the market upward, resulting in an inevitable crash. When the stock market crash people were looking for someone to blame, but Kenneth Galbraith
But, the worse happened on October 24, 1929 or Black Thursday. The stock market took a downturn following this peek. As the stocks began to drop, investors who had their money in shares began to panic (Grant 17). Many investors attempted to sell their stock before the value dropped even lower. The market panic abated somewhat when Richard Whitney, vice president of the New York Stock Exchange, and other Wall Street executives attempted to halt the downturn by buying shares above the current market price. The infusion of the money proved to be only a temporary fix. Stocks continued to fall over the next week, then on October 28, 1929, Black Monday, stock values fell by thirteen percent. Three million shares were traded in the first half of the next day and the market lost another twelve percent that day. In total, the stock market lost twenty- five billion dollars or the equivalent of more than three hundred billion dollars in modern terms(Crash 1). Several different explanations have been given throughout the year on what cause the market to crash. The main debate is whether fundamental conditions or a speculation bubble drove the market upward, resulting in an inevitable crash. When the stock market crash people were looking for someone to blame, but Kenneth Galbraith