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>