The stock market crash of was largely caused by bad stock market investments, low wages, a crumbling agricultural sector and high amounts of debt that could not be liquidated.
Upward trends in the stock market caused many people to invest money, even if they did not have the financial assets to back up their investments. During the s, people believed that investing in the stock market was a solid investment.What caused the Great Depression? / Stock Market Crash of 1929?
The continual upward trend of stock prices gave many the assurance needed to buy stocks on margin. Buying on margin refers to the act of putting a small amount of money down on a stock and allowing the broker to "lend" the rest to the investor. When stocks rose, the investor made money and was able to make up the difference.
When prices fell, the investor had to pay back the money that was owed. In October , stock prices began to fall, and the market crashed completely on October 29th.
What caused the Wall Street Crash of ? | Economics Help
People were panicking to sell their stocks in a hurry to avoid being left with worthless stock. Stock prices continued to drop for two years, and many people lost their entire life savings.
The Great Depression followed, resulting in the worst economic period in the history of the United States.. Star Gazing Yoga Sea Creatures Gardening Legends Birds more.
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Causes of the Great Depression - Wikipedia
Quick Answer The stock market crash of was largely caused by bad stock market investments, low wages, a crumbling agricultural sector and high amounts of debt that could not be liquidated.
Keep Learning What were the causes of the Great Depression? What caused the Great Depression in the s?
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What year did the stock market crash? Getty Images Hulton Archive Getty Images. Full Answer During the s, people believed that investing in the stock market was a solid investment.
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What happened in the Deep South of North America in the s? The stock market crash and subsequent economic depression, known as the Great Depression, hit the deep South much harder than the rest of the country. You May Also Like Q: Where is Albert Einstein buried? What were the economic effects of the Reagan administration?
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