Alycia Turack, Amanda Diorio, Carol Tomlinson, Emily Smith, Joey Wolf. Stock Market crash of 1929

Location New York Stock Exchange 1,366 members World’s largest Market Place 1,366 members The great crash happened at the New York Stock Exchange, which is the world’s largest market place. A total of 1366 members. Evolved from a group of men who used to meet under a buttonwood tree on what is now Wall Street in 1792 to discuss securities

Background After World War I Risky reputation Time period of Flappers People invested often Caused prices to rise Happened after WWI. Time period of flappers. Flappers became the model of new women. Morals were set aside. As the people began investing in the stock market the stock prices began to rise. Risky reputation investment was what it was known for.

Background 1925 Early 1929 Crash first noticeable Demand to enter the stock market Mini-crash 1925 the crash was first detected. There was a big demand in entering the stock market. People across the us were scrambling to get into the stock market. The stock market suffered a mini-crash on March 25, 1929.

Spring of 1929 Steel production House construction Car sales In the spring of 1929. steel production went down, house construction slowed, and cars were sold less and less.

Black Thursday October 24, 1929 Stock prices plummeted 12.9 million shares sold Four days after Black Tuesday, stocks fell again.

Stocks plummeted even more Black Monday October 28, 1929 Stocks plummeted even more No help Stocks had plummeted again and there was no one around to come and save them.

Black Tuesday October 29, 1929 Worst day in stock market history During this, everyone was trying to sell their stocks but no one could get them sold. Eventually, stock market prices collapsed.

Business Issues Officially closed Monday November 4, 1929 ghfh Officially closed November 1, 1929 Few days Monday November 4, 1929 Reopened Prices seemed to stabilize after the reopening. Over the next two years the stock market continued to drop. Reached it’s low on July 8, 1932 when Dow Jones Industrial Average closed.

Causes Agricultural recession Better technology increased Small farms driven out of business Better technology increased Food demand not increasing at the same rate Small farms were driven out of business because they were not able to compete in the new economy climate.

Causes False expectations and over exuberance Fall in prices occurred Market fell rapidly As share prices rose, people borrowed money to invest October 1929 Shares grossly over-valued Companies posted disappointing results Investors cashed in on profits There was false expectations and over exuberance. As share prices rose, the people borrowed more money to invest. The market eventually fell rapidly once again.

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 There was a significance weakening in the banking system. Before the Great Depression, banks had small to medium firms and America had over 30,000 banks. There was a prone to going bankrupt if there was a 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 Suicides reported Devastated economy Key factor in the Great Depression Suicides reported Lost life savings Companies ruined Faith in banks destroyed The stock market crashing led up to the Great Depression. The economy was devastated, people committed suicide, lost life savings, companies were ruined, and faith in banks were 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 banks invested in the client’s money. When they were forced to close, people panicked and withdrew all their money. This caused more and more banks to close. When money wasn’t retrieved, their life savings were lost.

The Great Depression Businesses lost money Consumers curbed spending Cut workers/wages/hours People made less money Consumers curbed spending No luxury goods Businesses lost money so they cut workers, wages, and hours. Consumers curbed their spending which meant no luxury goods. People made less money as a result of smaller wages.

The Great Depression Lack of Spending Out of business Lack of spending caused other businesses to go out of business. Also led businesses to cut back wages and lay off workers . Some left all workers unemployed.

Dust Bowl Previous depression BUT Farmers usually safer Fed themselves During Great Depression: Great Plains hit with drought and dust storms In previous depressions farmers were usually safe because they could feed themselves. But during the dust bowl, the Great Plains were hit with a drought and a dust storm.

Works Cited "Google Images." Google. Web. 12 Apr. 2011. <http://www.google.com/imgres?imgurl=http://lawprofessors.typepad.com/.a/6a0 0d8341bfae553ef0120a6996963970c-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>