The End of Prosperity: Short Term Reasons Flashcards
1
Q
What can be perceived as the two greatest short term reasons for the end of prosperity?
A
Over speculation on the stock market.
The availability of easy credit.
2
Q
When did the rise in stock prices begin to slow?
A
1928.
3
Q
Were any stock market regulations in place throughout the 1920s?
A
None.
4
Q
What was the value of the stock market in 1925?
A
$27 billion.
5
Q
What was the value of the stock market in early 1929?
A
$87 billion.
6
Q
How many shareholders were there in the USA in summer 1929?
A
20 million.
7
Q
What percentage of the purchase price of shares was borrowed?
A
75%.
8
Q
What was the effect of easy access to credit on prices?
A
Prices were only artificially high.
