The Market Crash of 1929 Essay - 1463 Words

The Market Crash of 1929 Wall Street Crash, stock market crash in the United States in 1929. In 1927, after having focused on investing abroad and with the US economy growing stronger, the financiers based in New Yorks Wall Streetturned their attention to their home market. As they bought into the stock market, so the prices of securities rose. As they bought more and more, prices went higher and higher, and ordinary investors were attracted to invest by the apparently effortless boom that was created. By the middle of 1929 it was estimated that about nine million Americans (out of a population of 122 million) had capital†¦show more content†¦On the following day, Black Thursday, more than twice those numbers were traded. On Monday nine million shares changed hands; $14 billion had been wiped off the value of shares in less than a week. Then, on Black Tuesday, everything fell apart; the share p rice of many big companies including General Electric and Woolworth collapsed. In that one day more than 16 million shares were traded and another $10 billion was wiped off share values. What happened on Wall Street was mirrored on other stock exchanges in the United States from Chicago to San Francisco. It was a stark end to a decade that had been marked by optimism, high employment, and prosperity. Not surprisingly, confidence in banks and bankers, the stock market and stockbrokers evaporated. Bankruptciesand destitution were rife. Mortgageforeclosures increased. The middle classes retrenched. Many lost their jobs; unemployment rose by nearly two million within half a year. Although when it began some thought it was merely a welcome correction in the market, the crash marked the start of the worldwide Great Depression and created the conditions for the New Deal introduced by Franklin D. Roosevelt in 1933. New Deal, name given to the peacetime domestic programme of United States president Franklin D. Roosevelt, and especially to the innovative measures taken between 1933 and 1938 to counteract theShow MoreRelatedThe Stock Market Crash of 19291289 Words   |  6 Pageshome or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929.First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had started by 1928. The stock market was no longer a long-term investmentRead MoreStock Market Crash of 1929835 Words   |  4 PagesThe Stock Market Crash of 1929 was the most devastating crash in U.S. history. It started on October 24, 1929 and the downfall ended in July 1932. I always wonde red what caused this calamity. Before starting this report, I knew basic idea about the crash. It was a time of decline and huge fortunes were lost. Now I can figure out just why. The research process for my report was no easy task. The simple part was choosing my topic. As soon as I saw â€Å"Crash of 1929† on the topic list, I had my mind fixedRead MoreThe Stock Market Crash Of 19291598 Words   |  7 Pages1920’s there was a large boom in the stock market. By August 1929, there was massive expansion and stock prices reached their peak. In the words of PBS, â€Å"A boom took stock prices to peaks never before seen† (PBS 1). However, all good things eventually come to an end. What must have felt like over night, the stock market crashed and this would later be known as one of the most devastating economic downturns in U.S. history. The Stock Market Crash of 1929 was so significant but to this day people questionRead More1929 Stock Market Crash1413 Words   |  6 PagesThe 1929 Stock Market Crash In early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928 and peaked at 381 in September of 1929. (1929Â…) It was anticipated that the increases in earnings and dividends would continue. (1929Â…) The price to earnings ratings rose from 10 to 12 to 20 and higher for the market s favorite stocks. (1929Â…) Observers believed that stock market prices in the first 6 months of 1929 were high, while others saw them toRead MoreThe Stock Market Crash Of 19291683 Words   |  7 PagesOn October 29, 1929, investors took a turn for the worse and were just in the beginning of a huge crisis that would cause them to lose everything. This crash pushed many Americans to depression, suicide, and destruction. By 1933, 4,000 banks had closed and Americans started to panic. The stock market crash of 1929 was a major turning point in the history of the United States and billions of dollars were lost. During the 1920s, throughout the country, there were social, economic, and political changesRead MoreThe Stock Market Crash Of 19291437 Words   |  6 PagesBy early 1929, people across the United States were rushing to get into the stock market. The profits seemed so certain that even many companies placed money in the stock market. In addition, even more problematic, some banks placed their customers money in the stock market (without their consent). With the stock market prices rising, everything seemed fantastic. Many believe incorrectly that the stock market crash of 1929 is the same as the Great Depression when in fact; it was one of the majorRead MoreThe Stock Market Crash Of 19291590 Words   |  7 PagesThe cause of the crash in the stock market in 1929, was an incident that occurred on October 29, which was called Black Tuesday. Investors traded 16 million dollar of shares toward the New York Stock Exchange in a day, upon that billions of dollars were lost and investors lost their business or their jobs. one of the major reason why was that car and other factory produced certain quota of cars. during the great depression people who were rich is now poor and the poor and the poorer. people wereRead MoreThe Stock Market Crash of 19291013 Words   |  5 PagesBlack Tuesday was Tuesday, October 29, 1929. This was the day the New York Stock Exchange crashed. This was the single largest crash in the country. Black Tuesday hit Wall Street as investors traded 16 million shares in one day on the New York Stock Exchange. Black Tuesday wiped out thousands of investors and billions of dollars were lost. Black Tuesday was an event leading up to the stock market crash. As a result numerous Americans lost all to a lot of their savings. Black Tuesday was also knownRead MoreThe Stock Market Crash Of 19291284 Words   |  6 PagesThe Stock Market Crash of 1929 â€Å"started† on the 24th of October 1929 with 12’894’650 shares being traded; thi s is the same day that Richard Whitney went to the stock exchange and bought targeted shares in an attempt to stabilize the stock market. As will be made evident, this did not work. In fact, an even worse day, dubbed â€Å"Black Tuesday†, occurred on the 29th of October where 16’410’030 shares were traded. From the week of October 23rd to 31st the panic settled in and a total of 70.8 million sharesRead MoreStock Market Crash Of 19291432 Words   |  6 PagesStock Market Crash of 1929 The United States was experiencing great optimism and economic growth prior to the stock market crash of 1929. The conclusion of World War I in 1918 ignited this exciting time known as the â€Å"Roaring 20’s.† The key economic factors that contributed to this time is that business’ were exporting to Europe (which was still rebuilding from the war), unemployment was low, and automobiles and other goods were spreading across America creating jobs and efficiencies for