The Stock Market Crashes Objective: The effects of the stock market crash on the U.S.
The Crash Economists had differing opinions on the stock market’s future Most of society looked at the past several years and saw only success Saw as much as a 50% gain in a year Some started to see some economic issues rising Sales of manufactured goods Rumors of big investors getting ready to take their money out of stocks Could cause prices to collapse
The Crash October 24th, 1929 – nervous investors began selling stocks People noticed the trend of stocks being sold Joined in the selling So many stocks being sold with almost no one there to buy them “Traders on the floor shrieked and howled their offers for desperate minutes before they found takers. Such a roar arouse from the Stock Exchange floor that it could be heard for blocks…” from the Seattle Post-Intelligencer
The Crash Some groups of leading bankers attempted to buy stocks to prevent further collapse in prices This helped stop the panic for a short time Friday (The crash happened Thursday) some stocks rose slightly Monday when trading opened stock prices plummeted Tuesday was the worst day of all These sell offs affected even the most solid companies (About 16 million shares) Called Black Tuesday
The Crash Stock Market dropped in value about $16 billion Nearly half of the market’s value Ticker-tape reported a steady stream of falling prices