Stock Market Crash

Elliott Boom to Bust Project

How the Market Became Inflated

During this point in time industry was booming and stock values were rising quickly. Many people wanted to buy stocks and sell them later for a profit. People were also advised to invest in stock at least once a month. So many people were shareholders. Many people, however, lacked the money to buy all the stocks they wished. Because they could not afford to buy stocks they bought on margin. To buy on margin to pay only a portion of the cost and borrow the rest of the money from your broker. Buying on margin also helped inflate the stock market.

Market Crashing

Information about the Market Crash

Shareholders feared the boom market would end and sold their stocks late in September. Also many brokers demanded to get their borrowed money back forcing shareholders to sell stock.

With so many people selling stock the prices dropped to be able to get stock off their hands. (This is why the market crashed.) With the prices dropping quickly panicked traders sold lots of stocks. By October 29 more than 16 million stocks had changed hands and prices had plummeted. (This is how the market crashed.)


It was October 24th, 1929.This happened after the roaring twenties.This was the share day.By this day the call for money had gone from 20% to 5%.With investors selling their stock, the value went down. Many fortunes were lost.There had been very high interest on the stock is what kept the stock market in business President Hoover had said.



bad financial decisions led to the crash for many reasons. In 1929 the federal reserve took measures to diffuse the economy and stock markets problems. Also a large expansion of investment trust, which in turn drove up prices of stocks and led to the crash. Finally many people invested the majority of their money or savings into stocks based on how well they were doing before the crash. Because so many people invested so much of their money when it crashed they were left with next to nothing and poverty skyrocketed. All of these aspects went into bad personal finance decisions that led to the crash.


As the stock market was continuously going down there was chaos at the banks. Banking systems were trying to collect loans from investors whose stocks were now worthless. Banks also had invested depositors' money into the market. When word got out depositors rushed to get their money out of savings. The banks began losing money rapidly when they could not make fresh funds.Some banks who had invested depositors’ money into the market had a default and could not pay back all the money. People were losing money left and right.

A default is failure to complete a task especially a financial obligation (this is what happened above.)


Impacts and Results


From the stock market crashing. Many people lost money, people that had millions lost all of their money. The unemployment rate skyrocketed. People gave up on trying to find a job. Between 1929 and 1933 the U.S. GNP dropped almost 25%.The soup kitchens all over the country got a lot of business.


After the crash in 1929, there was a gradual improvement but then another crash in 1932. This drop was so massive it dissolved any profit the stock market ever had. It was said that it would take thirty years to get the stock market back to where it was.


After the crash poverty rose a great deal. As did the joblessness rate. The wealth was not evenly distributed at all which led to extreme poverty. The 1% at the top of the spectrum had 650% more wealth than the 11% at the bottom. To make the joblessness rate worse aspects like unequal distribution of corporate power, a poor banking structure, foreign balance of payments, bad state of economic intelligence.


The stock market crash in 1929 did many things. One of the main things it did to the economy was immediately discourage consumers and the buying and selling of goods. This was difficult for the economy because without the number of goods being produced and bought the income to the country was dramatically reduced, and the backlash was brutal. Another thing the stock market crash did to the economy was it made many businesses, and companies, along with normal peoples live that collapsed under the debt they were in.


Because we are and have been for many years such an influential and resounding country everything that happens in our country will have backlash all across the globe. That is what this section is all about. One of the main points of effects of the stock market crash of 1929 would be Europe. This was because europeans needed to borrow money from american banks and sell goods to us to repay for the first world war. International trade was also slowed because without loans for the US. other nations did not have enough money to spend like they previously.



Even though people didn't think women should hold jobs while men were unemployed, a lot of women worked. Even the women that stayed home did a lot to help. They would make clothes for themselves and their family. They would make their own food too. Sometimes they would make small business from their homes, doing things like ironing and cooking. Eleanor Roosevelt was a great role model for women across America.