The Stock Market Crash Began The Great Depression

1531 words - 6 pages

Investing millions a year, stock investors never thought the system would fail, but one day, it all went away. The stock market crashed leaving millions without work. The Stock Market’s Crash began the Great Depression and America would reap havoc for many years.
The stock market is a great way to buy part of a company & gain or loose money depending on how the company is making money buy buying a share. “The stock market is owning a small piece of the company; the stock market is owning a piece of a business” (Christie 5). Therefore, investing in the stocks is a great idea when prices are high. Furthermore, it is a hard job to keep up with everything needed to know for the job. Investors and brokers are the one who do the buying and selling; “A broker is a person who buys or sells things on behalf of another, a broker who buys and sells shares is a STOCK BROKER.” (30). Working with a Stock Broker is a wise way to go when one is starting to buy and sell stocks. The brokers advise and help people find stocks worth investing in. In the stock market, people can rush to buys shares or hold back, in other words, “Fools get rich” (13) “people who knew least about the stock market have made the most money out of it in the last few months. Fools who rushed in where wise men feared to go ran up high gains.” (13). Sometimes it is smart to rush in, but the stock market isn’t like that. It isn’t a great idea to be a fool and rush in to stocks; the Roaring 20’s was an exception to this rule(most were well-to-do). The stocks help many Americans double the amount of money they have in an elaborate, fun way. The stock market helps keep many businesses around, and helps investors when they sell it.
The stock market was crumbling, . There was a “six day period between October 24 and October 29, 1929 known as the Stock Market Crash.” (Christie 29). The stock crash was not just those days; it took many years to get used to life after the crash. It would have been extremely hard as an investor to see it all vanish. “Huge numbers of orders to buy and sell shares were coming into the stock exchange, causing the prices of stocks to change minute by minute; the ticker tape couldn’t keep up with the changes.” (15). Furthermore, a main reason the stocks crashed was because of the lack of technology; a computer system could have kept better track of the stocks and who was buying and selling. Finally, had there been less of a rush, the ticker tape wouldn’t have broken; people should have taken turns not rushed and trampled each other. The stocks fell hard within an hour that “within an hour of opening bell on Monday October 28, it became clear the market was headed done; panic selling broke out.” (5). This shows that panic selling could have been the main cause in the crash; decisions were too rushed to be smart. Also, people knew they had to sell because they needed money fast. Stocks played a huge role in the Roaring 20’s, and a big role in...

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