1920 stock market rise

1920 stock market rise

Author: andrey.i On: 18.06.2017

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What was the stock market like in the 's

The rise and fall of the American economy, Back to The USA, A nation of contrasts, index. You're using the Internet Explorer 6 browser to view the BBC website. Our site will work much better if you change to a more modern browser. It's free, quick and easy.

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1920 stock market rise

Continue Find out more. British Broadcasting Corporation Home Accessibility links Skip to content Skip to local navigation Skip to bbc. This page has been archived and is no longer updated. Find out more about page archiving. BBC Radio 1 BBC 1Xtra. Print History The rise and fall of the American economy, Why did this prosperity come to a sudden end in ?

Long Bull Market 's: US History for Kids ***

Longer term reasons for the end of prosperity Overproduction in industry - By the end of the s there were too many consumer goods [ Consumer goods: Goods used on a daily basis in the home eg vacuum cleaner, fridge and radio.

The supply was bigger than the demand. Overproduction in agriculture - As farming techniques improved, farmers started producing too much food. There was less demand from European for food from America because they could grow their own crops. An abundance of crops led to falling prices and thousands of farmers became unemployed after having to sell their farms. Commerce - By the end of the s, America tried to sell its surplus goods to European countries.

Essay The stock market in the s - Words | Majortests

But, in response to the Fordney-McCumber Tariff Act [ Fordney-McCumber Tariff Act: Taxes were imposed on goods from abroad in order to encourage people to buy American goods. So American goods were too expensive to buy in Europe and, as a result, there wasn't much trade between America and European countries. Property prices - House prices increased a great deal in the early s. But after , house prices fell leaving a number of Americans owning houses that were worth less money than what they had paid for them.

Falling demand for goods - It should be remembered that not everyone was rich in America in the s. A lot of the country's poorer people bought goods on credit and as a result, a great deal of them owed money to shops and large companies. Many of these companies subsenquently went into financial difficulties as the poor failed to pay their debts. Too many small banks - The financial sector was not very tightly regulated.

There were no large banks in America, but rather an abundance of small banks. These small banks did not have the financial resources to cope with the rush for money when the Wall Street Crash [ Wall Street Crash: Economic downturn on the stock market in A number of banks had to close leaving thousands of customers with no money at all. Short term reasons for the end of prosperity The Stock Market - Throughout the s the prices of shares [ Shares: Financial stakes in a company or business.

1920 stock market rise

People continued to buy shares as they were making huge profits from them. By over 20 million people had invested in shares. Over speculation - As it was easy to borrow money, some people would buy shares on the margin [ 'On the margin': People borrowing money in order to be able to buy shares.

Then they would sell the shares, pay off the original debt and make a profit. Loss of confidence and a sudden fall in prices - The Wall Street Crash.

1920 stock market rise

Why did the Wall Street Crash happen in ? Can you state six reasons for the Wall Street Crash?

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