Why did wall street "crash" 4.1 Flashcards
what was overproduction
when factories made goods faster than they could sell them leading to falling profits
why were companies struggling to sell goods abroad
foreign governments had put tariffs on US-made goods to encourage consumers to buy goods made in their own country
why did some people begin to sell their shares in september 1929
they began to doupt whether the companies in which they had invested would keep making enough money
why did share prices drop
people were trying to encourage buyers
how many shares were sold on 24 October 1929
13 million (five times as many on a normal day)
by how much did the price of a share from the General Electric Company drop
$3.15-$2.83
what was 24 October 1929 known as
black thursday of the crash
what happened on tuesday 29 october 1929
people mdly tried to sell their shares at any price with 16million shares being sold during the day and the average price of shares dropped 40 cents. shareholders lost
$8 000 000 000
why did banks go bankrupt
people had borrowed money from banks to buy shares with the idea they could use the profits from the shares to pay off their depts but as share prices dropped, depts couldnt be repaid and banks went bankrupt.
how many banks went bust in 1929
659
what happened in december 1930
the Bank of the United States went bust
what was significant about the Bank of the United States
almost one third oif New Yorkers saved with the bank and lost everything (400,000 people)
