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Panic selling shares in October 1929 Caused the Wall Street Crash

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Introduction

Panic selling shares in October 1929 Caused the Wall Street Crash Panic selling shares in 24th October 1929, caused The Wall Street Crash. One way of making money during the 1920s was to buy stocks and shares, prices of these stocks and share constantly went up, this meant that investors would keep them for a short time and then sells them as a profit. On Black Thursday, 24 Oct 1929 Share prices fell faster and lower than ever before or since. Wall Street is on Manhattan Island in the heart of New York City. It is a street Of tall office buildings. The most important of these buildings was the New York Stock Exchange, this was where stocks and shared of all kinds are bought and sold, some two or three million. ...read more.

Middle

They agreed to spend $40,000,000 each buying shares hoping it would encourage people to buy and sell shares. When the stock exchange closed that afternoon shares had stopped falling, it seemed like the crises was over. It was possible to buy stocks and shares on credit. This was called buying on the margin and enabled speculators to sell off shares at a profit before paying what they owed. In this way it was possible to make a considerable amount of money without a great deal of investment. Speculation on the stock market, many were ordinary people buying shares on the margin, it was easy to buy shares, wait for the price to rise and then sell them for a profit. ...read more.

Conclusion

In October 1929 everybody was trying to sell their shares. Panic spread on the Wall Street stock exchange, share prices began to fall steeply, this panic brought about the Wall Street crash. Stock broker started selling shares in large numbers; stronger companies had gone down dozens. General electrical shares which had opened at 315 points fell to 283 points. United steel crashed 205 points down to 193 points, Radio share plummeted by 24 points. On October 29, later nicknamed "Black Tuesday," the stock market crashed. On that day, over 16 million shares of stock were sold and the market fell over 14 billion dollars. By comparison, the entire budget of the U.S. Government that year was three billion dollars. Brokers screamed as hysterical visitors were taken away by the police. In one day, the United States lost more capital than it had spent in all of World War I. ...read more.

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