History of the Stock Market

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History of the Stock Market

• 1920s

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1920s

• The roaring twenties gave way to what is largely
  considered the most difficult time in U.S.
  financial history.
• 1929 stock market crash

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Headlines before the Crash

• Wednesday, July 3, 1929, Page 31, Col. 5
• SEES STOCK RISE JUSTIFIED
• Friday, September 6, 1929, Page 1, Col. 7
• STOCK PRICES BREAK ON DARK PROPHECY
• Page 12, Col. 2
• BABSON PREDICTS 'CRASH' IN STOCKS

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The 1929 Stock Market Crash
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The Causes of the 1929 Crash

• Stocks were Overpriced
• Massive Fraud and Illegal Activity
• Margin Buying
• Federal Reserve Policy
• Public Officials' Repeated Statements

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Did the Stock Market Crash Cause the Great
Depression?

• Unequal Distribution of Wealth and Income
• Unequal Distribution of Corporate Power
• Bad Banking Structure
• Foreign Balance of Payments
• Limited or Poor State of Economic Intelligence
• Decrease in Money Supply
• International Factors

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Regulations enforced to protect investors after
the Crash

• Securities and Exchange Commission (SEC)
• The Glass-Steagall Act