How Did The Roaring Twenties Affect The Stock Market In Canada

“The Roaring Twenties” was a phrase often used when describing the 1920s. The phrase is justified by the cultural and artistic diversity of the time, and it was a period of glamour and prosperity for many Canadians (Drummond). Until 1924 the effects of the Great War continued to depress Canadian economic activity. However, in the mid-1920s Canada’s economy began to prosper because of innovative industries making Canada one of the best places to live. Paper and pulp mills successfully impacted Canada’s economy because of large amounts of production, investment, and demand. The automobile industry was very beneficial because it created more jobs and reduced unemployment with the help of spinoff industries. The stock market became a new frontier

In the 1920s, that was the first thing that came to mind for investing. Although the stock market had the reputation of being a risky place to invest money, it did not appear that way in the 1920s and the stock market looked like a reliable investment for the future. Therefore, in the 1920s many people felt that they could make a fortune from the stock market. Despite the fact that the stock market was instable, Canadians invested all their money into it. The roaring twenties had created a platform where not only the rich had invested in the stock market, but people almost all economic classes placed money into the markets. The stock market became a new and modern frontier of making money. Increasingly, in the late 1920s, the value of stocks was not based on the market value of the stock. The value was being established by investors’ demand for it. The more money people invested, the greater the market value of stocks increased. Hence, the value of stocks increased through the mid 1920’s, and it was guaranteed that there was no other convincing way of making money. For example, the shares of Canadian Marconi, a radio company,