America: The Wall Street Crash Flashcards
Why was playing the stock market popular in the 1920s?
Large profits could be made
What were the factors of inequalities of wealth?
-Not all Americans could afford the goods that factories produced
-There was a limit to the number of cars,radios, telephones and fridges people needed/could buy
-American factories were making goods faster than they could sell them
What were the factors of problems abroad?
-Companies struggled to sell their goods abroad due to taxes but on items by foreign governments
-Countries would encourage their citizens to buy goods made in their own country
What were the factors of lack of confidence?
-Some shareholders began to doubt whether the companies they had invested in would keep making large profits
-In September 1929 a few cautious people began to sell their shares
What were the result of people panicking?
-More and more people began to sell their shares as word spread about the fall profits of leading us companies
-Share holders realised their shares were only worth something if someone was willing to buy it
-As people tried to sell their shares for cash, they dropped their price to attract buyers
When was Black Thursday?
24th of October 1929
How many share were sold on Black Thursday?
13 million
Where were shares sold?
On the New York stock exchange on Wall Street
Why did banks go bankrupt?
Many Americans that borrowed money from the banks couldn’t pay them back in full
How many banks went bankrupt in 1929?
659
