The Wall Street Crash of 1929

“Anyone who bought stocks in mid 1929 and held onto them saw most of his or her adult life pass by before getting back to even.”

- Richard M. Slasman

Why it happened• One way of making money during the 1920s

was to buy stocks and shares. • Prices of these stocks and shares constantly

went up and so investors kept them for a short-term period and then sold them at a good profit.

• People invested heavily in this belief.

When it happened

• 24th of October 1929 dramatic increase in purchases of shares.•29th of October 1929 the share market at Wall Street crashed.•This lead to the great depression which effected all industrialized countries.

Leading up to the crash

• The roaring 20’s were a time of wealth and excess.

• Despite caution of the dangers of speculation, many believed that the market could sustain high level prices.

• A bull market occurred. A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases.

Speculation

• As the US industry boomed, share prices went up.

• Millions of people were encouraged to buy shares based on the confidence that prices would continue to rise.

Loss of confidence• Many people around the globe felt the stock

market meant certain profit so bought as many shares as possible.

• By Autumn 1929 investors sensed a crisis looming and sold their shares.

• This led to a loss in confidence in buyers- the main reason the shares had been rising!

The worst week of 1929: 24th-29th October

• Investors began panic-selling shares leading to tumbling prices.

• On October 24th 13 million shares were sold. This happened throughout the week; and on the 29th of October 16 million shares were sold.

• This matter was made worse as the all the banks were also selling their shares to cover losses made by bankrupt speculators.

Aftermath• People who had put money into shares and

had not sold them lost huge amounts of money and were in debt for the better part of their life.

• This was a major contributing factor that lead to the Great Depression.

Wall Street Images of the chaoson the day.