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It marked the start of the Great Depression, the largest economic downturn in American history, causing millions to become jobless and thousands to lose their life savings. People began going starving and living in bad conditions, until a series of government decisions believe it or not, gave jobs to people, and so did WWII. Eventually the American economy regulated itself.

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Stock Market Crash of Facts, Causes, Effects

October 24, was also coined the term 'black thursday' where new york stock shares crashed, and continued to plummet for the rest of the entire month. In History of the United States.

In the years leading up to , with the finding of gold inAlaska, South America, and Canada, the U. This led to consumer confidence because if the country was doing sofinancially well, then logic leads one to believe that thecountry's businesses will be doing equally well.

One way peopletook advantage of this influx was the stock market. Eventuallypeople started investing more money than they had in the stockmarket, using loans from lenders. It got to the point where theamount of money being traded on the stock market from lenders andthe amount of money sitting in shares exceeded the amount of moneyin circulation at the time.

This basically means the stock marketwas overinflated with money people didn't actually have. Eventuallypeople would have to sell their stock and pay back their loans. OnBlack Thursday, too many people sold their stocks and the marketcrashed, with prices falling to phenomenal levels.

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Consumer outlook became very pessimistic and the economy contracted sharply. Companies were hard hit by the decrease in consumer spending and this trend would continue for nea … rly three years.

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People began to panic and started selling all their stock back. Panic selling brought the market to the ground. The laws of supply and demand were in place - with no one left willing to buy stocks and everyone trying to sell at the same time, the market had nowhere to go but down.

There was over speculation in the Stock Market, which was not regulated.

Many Americans purchased stock on credit. This was known as margin buying.

why was the stock market crash in the 's so important? | Yahoo Answers

Banks were permitted to spe … culate in land and the stock market with little government regulations. Stock Brokers and businessmen kept telling the public that stocks would continue to rise yet there was no examination of stocks being sold to determine if they were actually sound financially.

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