THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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they will not have enough $ for food
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they will not be able to pay for their housing
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there won’t be enough jobs
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all of these will happen
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Detailed explanation-1: -When a stock tumbles and an investor loses money, the money doesn’t get redistributed to someone else. Essentially, it has disappeared into thin air, reflecting dwindling investor interest and a decline in investor perception of the stock.
Detailed explanation-2: -Do you lose all the money if the stock market crashes? No, a stock market crash only indicates a fall in prices where a majority of investors face losses but do not completely lose all the money. The money is lost only when the positions are sold during or after the crash.
Detailed explanation-3: -Sometimes, however, the economy turns or an asset bubble pops-in which case, markets crash. Investors who experience a crash can lose money if they sell their positions, instead of waiting it out for a rise. Those who have purchased stock on margin may be forced to liquidate at a loss due to margin calls.