Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
You can change this under Settings & Account at any time.
Stock Market Crash of 1929
Transcript of Stock Market Crash of 1929
Brings Signs of Trouble Summer Boom Black Thursday Black Monday
Black Tuesday - a time of optomism, enthusiasm and confidence - With stock prices rising, people began to buy on margin - During the months of June, July, and August, market prices rose to their highest levels to date, making many nearly forget about the mini crash in March. - Thursday morning (October 24, 1929), stock prices plummeted, shocking everybody. - Monday: That morning, as the prices again began to plummet, people began selling all their stocks to try to get out of the market. Stock Market Crash of 1929 - With different, new inventions (e.i. airplanes/ radio) anything seemed possible http://www.flickr.com/photos/msulibrary/3234218681/ - with the stock market booming, people truly believed they could become rich from buying socks - but with everyone wanting to buy stocks and prices rising, not everyone had enough money to do so. http://www.flickr.com/photos/mariostratu/3368609998/ - Buying on Market: the buyer of a stock only pays 10 - 20% of that stock and borrows the rest from a broker - it is very risky; if the price of the stock falls lower than the original loan amount, the broker makes a "margin call" making the investor pay the loan immediately. -With people blindly assuming that stock prices were continually going to rise, they ignored the enormous risk they were taking. - On March 25th, 1929 the stock market suffered a mini crash causing many margin calls to be issued. - Over the next several months, many warnings of a great crash were announced, but because of the flourishing economy, they were ignored. - Economist Irving Fisher even stated, "stock prices have reached what looks like a permanently high plateau." - September 3, 1929: the stock market reached its peak. The Dow Jones Industrial Average was at 381.17. - After two days, the market began to slowly drop. http://thewe.cc/contents/more/archive/us_debt.html - Throughout the months of September and October, market prices began to fluctuate. - October 24, 1929 - - People everywhere, watched the ticker as the prices of their stocks decreased greatly. - As rumors of suicides spread, aggrevated people assembled outside of the New York Stock Exchange on Wall Street, in disbelief of what was happening. http://www.cleveland.com/pdq/index.ssf/2011/10/one_epic_fail_deserves_some_ot.html - The panic then diminished in the afternoon. - Assuming that the market would go back up, many bankers began to invest large sums into the market. Seeing this, many investors became convinced to stop selling. - By the end of the day, the recovery was astonishing, and people were buying and selling stocks, at what seemed to be great prices. - That day, 12.9 millions stocks were
sold. - October 28 / 29, 1929 - - But when some banks decided to keep lending money, the panic stopped. - Tuesday: known as the "Worst Day in Stock Market History" With so many orders to sell, the ticker fell behind greatly. http://lbbspending.blogspot.com/2012/09/black-tuesday-in-north-finchley.html - Throughout the day, there was more buying than selling of stocks, and the prices collapsed. - Bankers were trying to convince investors to sell, rather than buy to
simulate the economy. - 16.4 million shares of stock were sold on Black Tuesday. Bibliography - Blumenthal, Karen. Six Days in October: The Stock Market Crash of 1929. New York, NY: Atheneum for Young Readers, 2002. Print. - Rosenburg, Jennifer. "The Stock Market Crash of 1929 (PageÂ 2)." About.com 20th Century History. About.com, 2013. Web. 04 Feb. 2013. <http://history1900s.about.com/od/1920s/a/stockcrash1929_2.htm>. Summary of the great depression.