What caused the stock market crash of 1929?

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What caused the stock market crash of 1929?

2007-03-03 06:48:11 · 4 answers · asked by Ejsenstejn 2 in Social Science ➔ Economics

4 answers

10% margin. In that time, people were allowed to buy stock by just putting 10% in cash down. When a stock fell, they had to come up with the cash and could not. So when the market started to fall just a bit, the margin calls drove it down a lot.

2007-03-03 06:53:07 · answer #1 · answered by Anonymous · 1⤊ 0⤋

Its complex answer and the other people comments are good ones on the 1929 crash.

2007-03-03 10:52:09 · answer #2 · answered by ram456456 5 · 0⤊ 0⤋

it's complicated

http://www.stock-market-crash.net/1929.htm

2007-03-03 06:55:07 · answer #3 · answered by Anonymous · 1⤊ 0⤋

More sellers than buyers.

2007-03-03 07:04:58 · answer #4 · answered by KevinStud99 6 · 0⤊ 0⤋