The 1929 Stock Market Crash

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Questions and Answers

What were the main causes of the Stock Market Crash of 1929?

Financial excess, rapid corporate growth, and over-speculation in the stock market.

What factors contributed to the exponential growth of the stock market in the 1920s?

Borrowed money being invested in the stock market and economic optimism.

When did the stock market crash in 1929?

October 29, 1929.

What was the impact of the stock market crash on the Dow Jones Industrial Average?

It lost roughly half of its value from the summer of 1929. Signup and view all the answers

What was the consequence of the stock market crash on the American economy?

It ushered in the Great Depression. Signup and view all the answers

What were some key factors that influenced the stock market crash?

Market speculation, brokerage houses, and post-World War I optimism. Signup and view all the answers

What triggered concerns about the stock market on Wall Street in early 1929?

The Federal Reserve raising concerns about speculation and too much money being invested in stocks. Signup and view all the answers

What were the factors that led to the Great Depression?

Factors that led to the Great Depression included the stock market crash, lack of capital, investor hesitancy, distrust of the market, struggling banks, and panic among depositors. Signup and view all the answers

What were the economic issues that persisted after the October 1929 crash?

The economic issues that persisted after the crash included struggling banks due to loans issued to speculators and investments in the stock market, as well as the loss of clients' savings and a loss of faith in banks and the stock market. Signup and view all the answers

What characterized the Roaring Twenties?

The Roaring Twenties were characterized by great prosperity, especially for large corporations, and the development of new technology and refined industrial methods. Signup and view all the answers

What led many to believe that the stock market could not fail?

The newfound wealth of businessmen and large corporations, which was invested in the stock market, led many to believe that the market could not fail. Signup and view all the answers

What indicated that the stock market was saturated in early 1929?

The small market slide in the spring of 1929, coupled with the response from the Federal Reserve, indicated that boundless confidence in Wall Street was likely unfounded. Signup and view all the answers

How did consumer credit contribute to market saturation and the banking crisis?

Consumer credit allowed people to borrow money to invest in the stock market, which led to stocks being purchased with loans instead of cash. When these stocks lost their value, banks lost the money they had invested, causing financial panic. Signup and view all the answers

How did American leaders contribute to the Wall Street Crash of 1929?

American leaders allowed unfettered growth and investment without adequate study of the market. They also allowed banks to engage in market speculation with their clients' money, leading to a simultaneous faltering of both banks and markets. Signup and view all the answers

What were the consequences of the Great Depression?

The consequences of the Great Depression included the failure of banks, widespread unemployment, defunct checks, inability to afford basic necessities, and a long-term economic downturn. The depression officially ended with the industrial growth brought by World War II. Signup and view all the answers

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