4 causes of why stock market crashed in 1929?

Answer 1

1. big companies had their money in it but when people bought less the market wenr down and so did their money.
2.Stock brokers let people get stock without having that money.
3. people had less money because they had to pay their credits off because they payed for things with credit so that means they spend less.
4. They spend less that means stores get less and profits go down. This is how people lost jobs and were jobless during this time. The stores had to let go of mant people.

Answer 2

1. The laws regarding margin trading in the U.S. were different then. You could buy stock on up to 90% margin.
2. Failed bonds were repackaged as securities and sold to unsuspecting buyers.
3. A lot of gold was shipped out of the country to France. This is probably the main reason.
4. Like a lit a match dropped into a gallon of gasoline, a panic spread and the house of cards came falling down. At that time the stock market wasn't as high as it is today and didn't have as far to fall.

Answer 3

1. Unstable basis of margin buying.
2. Investors bought borrowed money from their brokers who went to the bank for that money.
3.When stocks failed, investors defaulted and the money was lost.
4. Consumer dissatisfaction with durable goods led to less spending.