Why did the stock market fall during the Great Depression?
The Stock Market crash was the signal that the Great Depression had begun. There was over speculation in the Stock Market, which was not regulated.Many Americans purchased stock on credit. This was known as margin buying. Many businesses that were listed on the Market were not checked out by brokers and many were not worth what they were valued at on the Stock Market. There were no government regulations so a company could claim whatever wealth it wanted. A lot of the companies only existed on paper and many who invested in the stock market did not check to make sure the company was legit. This was a period when everyone thought the Stock Market would continue to climb but beneath the surface of this false boom time were events that were causing the economy to crumble.
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October 29, 1929, which became known as "Black Tuesday."
Answer . 18,000,500 dollars a second
The Dow dropped from a top of 381.17 before the crash in 1929 to a low of 41.22 in 1932- a whopping 89% selloff!
It was the practice of buying on margin that led to the Wall Street collapse.
it was whelly whelly bad and iflation had occured in the markets hola senor is that was it as i know as today and tomorrow.
Herbert Hoover was President of the United States when the Stock Market Crashed in 1929.
in the 1930`s
Yes, the stock market crash did begin the great depression but it wasn't the only cause. The depression was also due to the tariffs/war debt policies, factories producing more… than consumers demanded, farm sector crisis, easy credit, and unequal distribution of income. The stock market crash just tipped it all off.
There was a Msrjet Crash during the great depression.
The Dow Jones average peaked in 1 937 at 194.40 and did not achieve that level again until after the end of World War II.
Many businesses went out of business leaving millions without jobs or paychecks.
Because banks were taking the money from its investors and investing it in stocks, when people stopped buying stock the stock market crashed there fore people had lost all o…f there money. this is illegal now but it was a problem because no one was regulating the banks.
In short: Black Tuesday, October 29, 1929 is one of the main reasons why it crashed along with bank failures over 9000+ banks; Along with the reduction of purchasing across th…e spectrum of purchasing items, which in fact caused a redution in what was produced and lower workforces. Then there were issues of taxes that dealt a huge blow after a big drought that took place and forced the farmers to not be able to pay taxes, no profits or anything.....
Not enough money too buy house. thus making it very hard to sell them and business men loss thier jobs