THE GREAT DEPRESSION 1929 1940
THE WALL STREET CRASH OF 1929
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ford went bankrupt
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People stopped buying shares.
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Experts started to sell their shares.
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Radios stopped working
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Detailed explanation-1: -What caused the Wall Street crash of 1929? The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.
Detailed explanation-2: -During 1928, the price-earnings ratio for 45 industrial stocks increased from approximately 12 to approximately 14. It was over 15 in 1929 for industrials and then decreased to approximately 10 by the end of 1929. While not low, these price-earnings (P/E) ratios were by no means out of line historically.
Detailed explanation-3: -The Market-And People-Were Overconfident That same sense of reckless overconfidence extended to average consumers and small investors, too, leading to an “asset bubble.” The crash happened after a long period of rising market growth that led to consumer overconfidence.
Detailed explanation-4: -The Stock Market Crash of 1929 occurred on October 29, 1929, when Wall Street investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors.