The causes and effects of the stock crashes

1647 words - 7 pages ✓ Expert Reviewed
VIEW DOCUMENT
Preview

The causes and effects of the stock crashes

Almost 75 years and almost 20 years ago, there were huge crashes in New York. These crashes caused an uproar throughout the nation. Number of people died, billions of dollars lost and damaged lots of lives. Those crashes had been called most severe of the 20th century. Those crashes are symbolized as Black Days. Well, you might think that those crashes could be car crashes or plane crashes or train crashes. You might also think that if nation could have lost billions of dollars and lots of lives, those could be car or plane or train crashes. But as you thought, those were not car or plane or train crashes 75 and 20 years ago. The reasons were different than what you are thinking.

The main reasons to lost billions of dollars, lost precious lives and lots of damages to the nation were the Stock Market Crashes. On Thursday October 24, 1929 and on Monday October 19, 1987, there was a crash of stock prices on New York stock Exchange. It was a huge crash of stock prices in a single day. Billions of dollars and a number of precious lives were lost. But what we particularly think about Stock Crashes and how does it affect to common lives. The stock markets crashes and its affects are interrelated. The term stock crash came in to English Dictionary around 200 years ago. There was a first stock market crash in the history of economy and in early industrialization era, in the year 1878. It occurred in Wall Street and followed by huge opposition of stock system.

But, if we define stock crash, it is a devaluation of stocks or shares of different industries since their price on the vary day. The devaluation of stocks may goes down from 1% to 50 %. It depends on the time and the parameters. And also we need to know what is the stock market. The Stock Market is a place of commerce where people can come and buy or sell parts of companies called "stocks" or "shares". For example, if you wanted to buy 30 shares of "Hevini Enterprise’s stock for $5.00 a share, you spend $150.00. Then you sell 20 shares to your friend Joe at $20.00 a share. That means that you make a net income of $250. This is the reason that the Stock Market is so popular with investors. This is how investors make their money. A stock is a certificate of a share of ownership in a business corporation, entitling it's owner to dividends, that is, a share of the profits, and to a vote in that firm. But, there are a number of parameters, which can trigger the stock crashes, such as illegal activities, government policies, trade and budget deficits. The main affects of the stock crashes were the general investors, who have faith in their stock markets, economical system and financial solidarity; and the growing economy, which tried to be stabilized after bloodiest world war I. The 1920s began with the closing of the bloodiest war the world had ever witnessed. The nation was tired and in trouble, adjusting to peacetime living....

Find Another Essay On The causes and effects of the stock crashes

Causes And Effects Of The Civil War

1502 words - 6 pages country. The breaking point was, however, when Abraham Lincoln was elected president. He ardently believed in preserving the Union, and many Southerners feared this would put an end to their states rights, so they left the United States of America. Fort Sumter was fired upon in 1861, and four years of bloodshed began. The effects of the Civil War were many. In 1863, black slaves were freed by President Lincoln’s Emancipation Proclamation. Mr...

The CAuses and Effects of Poverty

765 words - 3 pages person’s outlook on life and as you can see poverty is one that can have a huge effect on not only one person, but also the people around him/ her. Works Cited "Causes and Effects of Poverty." Cliffs Notes. Cliffs Notes, n.d. Web. 27 Nov 2013. . SO"Types of poverty." Zanzibar Poverty Reduction Plan (ZPRP). Revolutionary Government of Zanzibar’s, n.d. Web. 13 Nov 2013. . URCE: ...

Common Causes Of Plane Crashes

734 words - 3 pages that are originated during some stage of the flight process. Main Causes of Plane Crashes 1. Decent and Landing Accidents Airplane decent and landing accidents have been statistically proven to be one of the most common forms of airplane incidents. Ultimately accounting for about 37% airplane accidents, there are several different stages of the decent and landing process and several mechanical issues as well as a lack of focus on the part of the...

The Causes Behind The Stock Market Crash Of 1929

1390 words - 6 pages . It provides boundless opportunities for companies to expand and for investors to earn large sums of money, but it never guarantees profit (Savill). Stock market crashes create devastating effects and are caused by many different reasons. Panicking investors and our lack of political rule and leadership along with the economic slippage are all at fault in causing the great stock market crash of 1929. Market speculation increased the market value...

Causes & Effects Of The Holocaust

1812 words - 7 pages Causes & Effects of the Holocaust There are times in history when desperate people plagued by desperate situations blindly give evil men power. These men, once given power, have only their own evil agendas to carry out. The Holocaust was the result of one such man's agenda. In short simplicity, shear terror, brutality, inhumanity, injustice, irresponsibility, immorality, stupidity, hatred, and pure evil are but a few words to describe the...

The Causes and Effects of the Spanish-American War

1128 words - 5 pages The Spanish-American war was fought in the year 1898, 33 years after the end of the Civil War in 1865. The threat of Spain upon Cuba blazed the patriotic hearts of the Americans as what appeared to be Spain torturing its territories. There are many causes that can be credited to the condition of these territories and surprisingly, but not too ironically, it can be clearly traced to that of the American people. The...

The Causes and Effects of the Peloponnesian War

1552 words - 6 pages The Peloponnesian War was between the Greek cities of Athens and Sparta due to the growing tensions that continued to grow between the two cities that eventually came to a breaking point. The Peloponnesian War, which can be divided into three phases known as: The Archidamian War, The Sicilian Expedition and The Decelean War, is one of the greatest event in Greek history and an analysis of the causes and effects of this war will give us a better...

The Causes And Effects Of The Different Types Of Terrorism.

1437 words - 6 pages Terrorism has been widely known to all of the world for many years. "It exists as a means of making a government or group aware of certain needs that they must change something by creating fear and destruction". But why do people have to resort to violent acts such as: bombing, assassinations, and hi-jacking? How do and how can individuals and organizations justify these acts of terror? During the last few years, many groups of terrorists...

Causes and Effects of the Assassination of John F. Kennedy

1627 words - 7 pages Vietnam results would have changed. Another effect was more of an emotional one. Many Americans were caught off guard, and they felt as if America would not be able to recover from this great loss. Regardless, there are causes and effects when evaluating the John F. Kennedy assassination. The death of a person could be caused by a number of reasons. In Kennedy’s case, it could have been his lack of war hungriness or in some American eyes, the Soviets...

Causes And Effects Of The Great Depression In America

3738 words - 15 pages that he was dwelling upon 'a permanently high plateau' of prosperity.2Only fifteen months later, those words would return to haunt him, as the nationplunged into the severest and most prolonged economic depression in its history. It beganwith a stock market crash in October 1929; it slowly but steadily deepened over the nextthree years until the nation's economy (and, many believed, its social and political...

The Autism Spectrum: Possible Causes And Effects

1715 words - 7 pages Twenty five percent of people around the world suffer from some sort of mental illness. That is about 2 billion people worldwide. People might not be able to recognize all of the people with the illnesses. One percent of all people are on the Autistic spectrum. Signs and symptoms normally appear between the ages of two and three, but there are early signs. There has been research for this disorder on the subject of causes, but the causes are...

Other The causes and effects of the stock crashes Essays

The Causes and Effects of Divorce

740 words - 3 pages getting entangled into marriage. Nevertheless, divorce rates still continue to increase to this very day. It certainly looks as if divorces occur more now than they did 20 years ago. There are three causes of divorce: changing of a woman’s household status, financial situations, and lack of communication. The first cause of increased divorce rates is because of women completely changing their household status. In past generations, men had to...

The Causes and Effects of Typhoid Fever

686 words - 3 pages symptoms of a fever, sometimes as high as 104° F. After the first stage of Typhoid fever, patients may have severe changes in blood pressure, affecting the Cardiovascular System, as proper blood pressure is vital to support bodily functions. Due to the change in blood pressure, the patient may have symptoms of hypertension, which can damage the heart, and in some cases be fetal due to heart attack. In addition to the Cardiovascular System...

The Causes And Effects Of A Recession

3459 words - 14 pages .(Sloman et al., 2012). (P.T.O) Q-2 Price Elasticity of demand measures how much impact will have on the customer’s willingness to buy a product if price is changed. It is calculated as percentage change in demand divided by percentage change in price. It can be elastic, inelastic and unit elastic. Elastic demand is more responsive to price which means a small percentage change in price effects more percentage change in demand...

The Causes And Effects Of Divorce

1258 words - 5 pages drastically bringing new effects in the lives of those individuals involved. Some causes for divorce vary from couple to couple, but the most frequent ones tend to be, change of women’s role in society, lack of communication, and lack of trust in the relationship. One significant cause that leads to divorce is the change in women’s roles. In the past, women depended only on their husbands’ earnings. Meanwhile, they had to do most of the housework...