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Causes to the Stock Market Crash

Causes to the Stock Market Crash. 1920s Economy. Everyone has disposable income: Suburbs, House, cars, radio, Entertainment, etc The stock market was a way to make money with extra cash The bull market was not a gamble. Bull Market. Bear Market. 1920s, few understood the business cycle

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Causes to the Stock Market Crash

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  1. Causes to the Stock Market Crash

  2. 1920s Economy • Everyone has disposable income: Suburbs, House, cars, radio, Entertainment, etc • The stock market was a way to make money with extra cash • The bull market was not a gamble

  3. Bull Market

  4. Bear Market • 1920s, few understood the business cycle • Today, we do not panic when prices begin to drop

  5. 1929 • Business sales continued • Stock continued to rise • Americans continued to buy stock

  6. Factors to the crash • Business prices began to fall, stock prices began to fall • Investors lose confidence and sell stock • Price Plunge (Black Thursday, Oct. 24th) • More panicked selling • Stock Market Crash (Black Tuesday, October 29, 1929)

  7. What do you do now if you bought thousands on margin buying?

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