The Stock Market Crash of 1929 Boom! And then Crash! Thats exactly what happened to the stock market in 1929. No one in the stocks business thought that the market would collapse. My intention with letting you know this information is to captivate and inform you about The Stock Market Crash of 1929. The Stock Market works like this: for every dollar invested a margin user would borrow 9 dollars worth of stock so if the stock market went up by 1 percent the investor would make 10 percent now this sounds like a great deal doesn't it? But what people didn't know is that in circumstances such as a crash these stock margins could count against you and that would mean that you owe the bank 10 times what you invested, this meant bankruptcy for many people. The Stock Boom …show more content…
Stock Margins are mainly what caused the bubble that would later burst and take everyone with it, a stock margin meant that a person would buy a stock with his own money and then he'd borrow the rest. Many became millionaires by investing in the stock market and almost all of them lost their money to the crash almost instantly but the people who were mostly affected were those who bought stocks on margin. After the time of enrichment and fortune came times of and i quote " life-ending darkness". The Stock Market Crash came and no one was prepared as i mentioned before people actually believed the stock market could not have a negative outcome. Many people had invested their life's savings and almost light-like it was gone. This made quite a number of people commit suicide. Many people believed that the reason of why the crash happened was because people were giving false information about stocks, this theory came to be true but it was not nearly enough false information to cause a stock market crash. Many believed that the Stock Market Crash is what cause The Great Depression, but it was only one of other immense factors that did