The Stock Market, a place for trading the shares of companies. In the 1920s, a new trend started, Americans became interested in buying stocks. Individuals invested in stock for many different reasons, but the most primary and common was to make more money through the banks' savings interest. Some investors engaged in speculation that they took the risks of believing the prices would continue to increase, thus they quickly invested more money in hope of getting more in return. Even though the traditional banks gave a lower return it is still significant that the stock market carries more risk than banks. As the market rose rapidly, many investors began "buying on margin”. It is a period known as bull markets. This invested practice allowed people to purchase stock …show more content…
If the price dropped, the investors had to sell their stock quickly or else they would not be able to repay their loans. The bull market exists only when investors are putting new money in. By the end of 1929, the stock market was lacking of new customers leading to the decline in prices on the New York Stock Exchange, known as The Stock Market Crash of 1929. The crash began on Thursday, October 24, 1929, when America's powerful economic strength in the 1920s came to an end in October 1929. The panic raised, leading to the quick trade of 12,894,650 shares. When the vice president of the New York Stock Exchange, Richard Whitney, and the broker for the House of Morgan entered, the dropping stopped temporarily. On October 29, 1929, known as “Black Tuesday”, the stock dropped dramatically without control and resolution. There was 16,410,030 shares trade in a single day - "Black Tuesday". October 29 alone had lost the stocks of $10 to $15 billion in value. After Black Thursday and Black Tuesday, the stock market has been destroyed