Stock Market Crash

By: Taylor Loop

How it started

In the roaring twenties everyone wanted stock so they bought stock and sold that stock than bought more stock and sold more stock and repeated this many times and the dow went up. Some people didn't know what they were buying they just put money into stocks doing this became a past time. Most of these people bought on margin. Margin is when you by a 100 dollar stock for 10 dollars. when stocks went down people owed money they didn't have. Actually people spent more money than had been made. This is how the stock market crashed.
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By Freelancer Journalist [CC0], via Wikimedia Commons

What happened after the crash?

29 october 1929 US stock market crashes also known as black Friday. One week later the dow was down 13%. The people who bought on margin had large debts. 12 million people were jobless and families of four had to live on $5.50 a week. This horrible time period is called the great depression. Now in the great depression people sold their nice cars houses and other items for a lot less than they were worth. Some of the stockholders committed suicide so they never had to pay back their debts. Don't think the great depression just affected us no the whole world was affected except for Japan. To make all this worse we had a food shortage. The farms kept using the same land to grow crops over and over again and the farms turned to dust. After the great depression the dow had dropped from 400 to 41.

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By User:Rjensen.Rjensen at en.wikipedia [Public domain], from Wikimedia Commons

Why I choose the stock market crash.

I choose this because I wanted to know more about how the DOW and or the stock market went down so fast.