Wall Street Crash c/w
The Wall Street Crash was caused for a number of reasons. There were many long term and short term causes which combined and led to the crash. For example: Speculation was a medium term cause as it had been around for quite a while but this led to the "Babson break" which was a trigger cause. The "Babson break" was a trigger cause because it instantly disrupted one of the most important factors in the stock market, confidence
Many people believed that the stock market was an easy and quick way to get rich, they were correct. Many Americans decided to invest in the stock market, there had only been four million share owners in 1920 but by 1929 there were around twenty million shareholders.
Around 600,000 people were speculators, they were gamblers. Speculators would borrow money to buy shares and sell them as soon as their price had risen. They would buy "on margin" which meant they only had to put down 10 per cent of the cash needed to buy shares and could borrow the rest. They would pay back the borrowed money back as soon as their shares had made a profit, this intrigued a lot of people.
The Wall Street Crash was caused for a number of reasons. There were many long term and short term causes which combined and led to the crash. For example: Speculation was a medium term cause as it had been around for quite a while but this led to the "Babson break" which was a trigger cause. The "Babson break" was a trigger cause because it instantly disrupted one of the most important factors in the stock market, confidence
Many people believed that the stock market was an easy and quick way to get rich, they were correct. Many Americans decided to invest in the stock market, there had only been four million share owners in 1920 but by 1929 there were around twenty million shareholders.
Around 600,000 people were speculators, they were gamblers. Speculators would borrow money to buy shares and sell them as soon as their price had risen. They would buy "on margin" which meant they only had to put down 10 per cent of the cash needed to buy shares and could borrow the rest. They would pay back the borrowed money back as soon as their shares had made a profit, this intrigued a lot of people.