The+Great+Depression

John Chang =**Stock Market Crash of 1929**= The 20's were a time of prosperity for many Americans. They spent a lot of money on products and stocks, and that helped the economy a lot. After a while, however, the demands slowly died down, and there were many overproduced stocks, which in turn lowered the price of the products. This continuous downfall eventually lead to "Black Thursday" on October 24, 1929, which is when share prices and stock prices on the New York Stock Exchange plummeted.

On the morning of Thursday, October 24, 1929, stock prices plummeted. Soon many people, in desperation, started selling their stocks. People across the country watched the ticker as the number quickly fell lower and lower. In fact, it fell at such as a rate that the ticker fell behind. A crowd gathered outside of the New York Stock Exchange on Wall Street, stunned at the downturn.

However, the panic faded in the afternoon. When a group of bankers started buying more stocks, their actions convinced others to stop selling and start buying. On that day alone12.9 million shares were sold - double the previous record.

Although the market had closed on a high on Black Thursday, the low numbers of the ticker that day had shocked many speculators. Hoping to get out of the stock market before they lost everything, they decided to sell. This time, as the stock prices plummeted, no one risked buying stocks, therefore making things worse.

October 29, 1929 is known as the worst day in stock market history. There were so many orders to sell that the ticker quickly fell behind. By the end of close, it had lagged to 2 1/2 hours behind. People quickly tried to sell their stocks, but couldn't get rid of their stocks fast enough. Since everyone was selling and nearly no one was buying, stock prices collapsed. Panic hit the country, and over 16.4 million shares of stock were sold, which is a new record. This day is now refered to as "Black Tuesday". Unsure of how to deal with the situation, the decision was made to close the stock market on Friday, November 1 for few days. When it reopened on Monday, November 4 for limited hours, stocks dropped again.

The slump continued until November 23, 1929, when prices seemed to stabilize. However, it dropped again soon after. Over the next two years, the stock market continued to drop. It reached its lowest point on July 8, 1932 when the Dow Jones Industrial Average closed at 41.22.

The Stock Market Crash of 1929 devastated the economy is an understatement. Many people lost their entire savings. Numerous companies were ruined. Faith in banks was destroyed, and many banks lost their business.

Sources: http://en.wikipedia.org/wiki/Great_Depression http://www65.statcan.gc.ca/acyb01/acyb01_0005-eng.htm http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm