Post on 21-Dec-2015
STOCK MARKET CRASH OF 1929
Alycia Turack, Amanda Diorio,
Carol Tomlinson,
Emily Smith, Joey Wolf.
Location
New York Stock Exchange World’s largest Market Place
1,366 members
Background
After World War I Time period of
Flappers
People invested often Caused prices to
rise
Risky reputation
Background
1925 Crash first noticeable
Early 1929 Demand to enter the stock market Mini-crash
Spring of 1929
Steel production
House construction
Car sales
Black Thursday
October 24, 1929 Stock prices plummeted 12.9 million shares sold
Black Monday
October 28, 1929 Stocks plummeted even more
No help
Black Tuesday
October 29, 1929
Worst day in stock market history
Business Issues
ghfh Officially closed November 1, 1929 Few days
Monday November 4, 1929 Reopened
Causes
Agricultural recession Small farms driven out of business
Better technology increased Food demand not increasing at the same
rate
Causes
False expectations and over exuberance
As share prices rose, people borrowed money to invest
October 1929 Shares grossly over-
valued Companies posted
disappointing results Investors cashed in on
profits Fall in prices occurred Market fell rapidly
Causes
Weakness in banking system Before the Great Depression banks had
Small to medium sized firms America had over 3o,000 banks
Prone to going bankrupt Run on deposits
Effects
Banks failed Businesses failed
Unemployment skyrocketed Consumers had less purchasing power
Existing businesses lowered prices
The Great Depression
Stock market crash Devastated economy
Key factor in the Great Depression Suicides reported Lost life savings Companies ruined Faith in banks destroyed
The Great Depression
1929-early 1940’s Banks invested clients money
Forced to close People panicked
Withdrawal of all money Caused more banks to close
If money was not retrieved, savings were lost
The Great Depression
Businesses lost money Cut workers/wages/hours
People made less money Consumers curbed spending
No luxury goods
The Great DepressionLack of Spending
Out of
busines
s
Dust Bowl
Previous depression Farmers usually safer Fed themselves
BUT During Great Depression:
Great Plains hit with drought and dust storms
Works Cited
"Google Images." Google. Web. 12 Apr. 2011. <http://www.google.com/imgres?imgurl=http://lawprofessors.typepad.com/.a/6a00d8341bfae553ef0120a6996963970c-800wi>.
Rosenberg, Jennifer. "Great Depression - A Short History of the Great Depression." 20th Century History. Web. 12 Apr. 2011. <http://history1900s.about.com/od/1930s/p/greatdepression.htm>.
Rosenberg, Jennifer. “Stock Market Crash-History of the
Stock Market Crash of 1929.” 20th Century History.
web 08 Apr. 2011.
"Stock Market Crash of 1929 and the Effects on the Economy." Olivet Nazarene University - Web Services. Web. 11 Apr. 2011. <http://web.olivet.edu/gradusers/kwatts1/stockcrasha.htm>.
"The Great Depression Cause and Effects." The Great Depression Causes. 13 Apr. 2011. <http://www.thegreatdepressioncauses.com/>.
"1920s." 20th Century History. Web. 12 Apr. 2011. <http://history1900s.about.com/od/1920s/a.stockcrash1929.htm>