1929 Stock Market Crash

Want to read the rest of this paper? Join Essayworld today to view this entire essay and over 50,000 other term papers

Exchange started the exchange. (1929�) There were 1100 members on the floor for the morning opening. (1929�) Furthermore, the exchange directed all employees to be on the floor since there were numerous margin calls and sell orders placed overnight. Extra telephone staff was also arranged at the member�s boxes around the floor. (1929�) The Dow Jones Average closed at 299 that day. (1929�)
On Tuesday, October 29th, 1929, the crash began. (1929�) Within the first few hours, the price fell so far as to wipe out all gains that had been made the entire previous year. (1929�) This day the Dow Jones Average would close at 230. (1929�) Between October 29th, and November 13 over 30 billion dollars disappeared from the American economy. (1929�) It took nearly 25 years for many of the stocks to recover. (1929�)
By mid November, the value of the New York Stock Exchange listings had dropped over 40%, a loss of $26 billion. (1929-1931) At one point in the crash tickers were 68 minutes behind. ...

Get instant access to over 50,000 essays. Write better papers. Get better grades. Already a member? Login

of 1929, the interest rate charged on broker loans rose tremendously. This policy reduced the amount of broker loans that originated from banks and lowered the liquidity of non-financial and other corporations that financed brokers and dealers. Lastly, many public officials commented that the stock price was too high. Herbert Hoover publicly stated that stocks were overvalued and that speculation hurt the economy. Hoover�s statement suggested to the public the lengths he was willing to go to control the stock market. These kinds of statements encouraged investors to believe that the market would continue to be strong, which could be one of the causes of the crash. (1929�)
The Crash and ...

Succeed in your coursework without stepping into a library. Get access to a growing library of notes, book reports, and research papers in 2 minutes or less.

CITE THIS PAGE: