How do the markets drop like in the great depression (or Black Tuesday / wall street crash)?
2007-10-16 16:36:56 · 3 answers · asked by Fresh Prince 2 in Business & Finance ➔ Investing
How? Downward.
2007-10-17 03:18:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
there is a difference between falls and crashes. falls happen often, sometimes days in a row. the reason is primarily lack of desire to invest, often referred to as the investors being speculative concerning the market. they tend to view, as a whole, low or no spark in the upcoming economy. A crash is a very severe dip /fall in investors willing to invest in businesses (buy stock) coupled with the desire and demand to divest in businesses (sell stocks). the great depression of 29 was caused by these factors but also because so many investors had bought their stocks on credit and when it was demanded for them to actually pay, they couldn't . today we cannot buy on margin (credit) like we could in 29 so the crash of 87 didn't materialize like it may have had margins been the same as in 29.
2007-10-16 23:51:36 · answer #2 · answered by 27ysq 4 · 0⤊ 0⤋
Everyone trying to sell their stocks at once, because of panic
2007-10-16 23:46:05 · answer #3 · answered by metro900 3 · 0⤊ 0⤋