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Stock Market Crash Of 1929 Essay

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The stock market crash of 1929 is one of the worst crashes in U.S. history. The Dow Jones Industrial Average lost a total of 30.57 points in a matter of only a day closing at 230 a percentage loss of 11.73 percent (Davis, 2007, pg105). Furthermore, the preceding day was worse and combined with the two days the stock market fell nearly 40 percent from its peak (Davis, 2007, pg105). Since the stock market was at an accelerated rise, many people used the stock market to buy luxury items that they couldn’t afford and pay for them later with their stock market investments. Consequently, when the stock market started to crash many people panicked and made it a race to see how fast people can get their money before it was gone. Due to the panic, 16.4 million were traded on Black Tuesday.

The failure of over 9,000 banks was another cause of the great depression. The banks failed because all the stock investors rushed to sell their shares and deposit their money, consequently, depleting the bank of all its money and eventually failing in the process leaving thousands of investors with overwhelming debt. …show more content…

The Act was made in efforts to increase U.S. Tariffs on agriculture imports and food to relieve the stress on the farmers suffering from the Great Depression. Instead of relieving stress for farmers, the Act only increased the deprivation of the Great Depression. Furthermore, the Act raised around 900 import tariffs by an average of 40% to 60% (CFI, 2023). In addition, the government created the Securities and Exchange Commision (SEC) in 1934 to restore the publics positive view on the financial market and regulate commerce in stocks and

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Buying on credit, overproduction, and income inequality were just some of the leading factors to the great depression. It began when installment buying was introduced people didn’t view debts as shameful and bought things at a faster rate than they could pay. People were also investing a lot in the stock market one day it crashed. October 29, 1929 (now known as black tuesday) was the day the stock market crashed. It caused great panic in America since many peoples entire life savings were lost in one day.

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