Stock Markets Exposed
How did the stock market "crash"?
I'm desperately trying to understand the stock market and the Great Depression, so my question is this: What, exactly, is a stock market "crash," and how did/does it happen? Explain this to me like you would with a mentally-retarded first-grader.
Public Comments
- Stock markets crash when there are more sellers "many more" than buyers. In the 20s most people bought on speculation "margin" minimum dollars down the rest on credit. Since most of them where over extended "deep in debt" when they where asked to pay for the stock they had to panic sale. Very similar to the present mortgage crisis.
- There was alot of people out of a job They did not have money to spend It resulted in a recession The economy fell realy fast globally Companies profits plummeted no profits and stocks fell really fast. ie Stockmarket crash. It happened in the mid 80's
- Ok if you want it in such simple terms, it means the stock market has lost its worth (aka its soooo broke aka no money). And for the Great Depression it was a period in time (after the WW2) when prices were inflated (rose alot ) like a loaf of bread was maybe $20,000. And this all happens most of the time because of war.
