Great Depression and the Stock Market Essay

Prior to the Great Depression, America’s economy was prospering. After World War I, the United States’ economy expanded due to factors that include more railroads being developed, automobiles being developed and more international trade happening. The stock market was on the rise greatly improving the wealth of Americans all over. A lot of Americans had put their money into to the stock market as a way to gain money. Much of the money that Americans invested were borrowed money. Because a lot of the money that Americans invested was borrowed money and banks were putting their money in stocks, when the stock market crashed on October 29th, 1929, millions of Americans lost their money. These were some of the factors that led to the time period known as the Great Depression. In response to the Great Depression, Franklin D. Roosevelt created a series of programs and

Many people up and left to move into the big cities, leaving many things behind. They thought they could make more money for less work by getting a job at the factories. People were running and telling about the amazing jobs the factories were giving them making more people come into the city (Document 2a). Companies in the city then grew larger causing a huge economic change in America, creating new jobs for all the new people moving to the cities. The men started to return from World War I and increased the employment rate while gaining profit for the people and the companies because of the production boom.

The stock market has been going up for several days now since the Hoover announcement” (Roth 8). Black Tuesday led America into a spiral with a lack of government funds, an increase in unemployment, widening wealth gaps, and overall chaos in day-to-day American lives (Gay 530-539). The 1920s American economy showed great accomplishments by starting off with highs in spending and consumerism but turned up short, leading America into The Great Depression. Causes for high spending included a change in trends, the end of the war, technological advancements, and Americans taking an interest in investing in the stock

As the value of stocks went up more people invested in the market this pushed prices up even

In its early years the automobile industry consisted of hundreds of firms, each producing a few models. William Durant, who bought and reorganized a failing Buick Motors in 1904, determined that if several automobile makers would unite, it would increase the protection for the group. He formed the General Motors Company in Flint, Michigan, in 1908.

<br>Stock prices had been rising steadily since 1921, but in 1928 and 1929 they surged forward, with the average price of stocks rising over 40 percent. The stock market was totally unregulated. Margin buying in particular proceeded at a feverish pace as customers borrowed up to 75 percent of the purchase price of stocks. That easy credit lured more speculators and less creditworthy investors

America’s Great Depression is believed as having begun in 1929 with the Stock Market crash, and ending in 1941 with America’s entry into World War II. In order to fully comprehend the repercussions and devastating effects of the Crash of 1929, it is important to examine the factors that contributed to the catastrophic event which led to The Great Depression. The Great Depression was the worst economic slump in U.S. history, and it spread to most of the industrialized world. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920s, and the

General Motors was founded by William Durant on September 16, 1908. At its inception, GM owned only the Buick Motor Company, but acquired Oldsmobile, Cadillac and Pontiac within ten years of its formation. Demand for automobiles heightened between 1910-1929, allowing General Motors to set the standard for production, design and marketing innovation. GM diversified their selection and opened more than a dozen new plants outside of the United States. In 1927, the head of GM's design studio, Harley Earl, designed the LaSalle which marked the beginning of true automotive design as it was far less boxy than the Ford Model T. "In 1940, former GM President William Knudesen was chosen by President Roosevelt as Chairman

So much so that he neglected the business which failed. Buick and Sherwood was sold for $100,000 and in 1899, using the money from the sale of the business as capital, he opened Buick Auto-Vim and Power Company, which made gas engines for agricultural and stationary use. In 1902 he reorganised the company to produce cars. With his machinist he developed the ‘valve-in-head’ over head engine that was to make the company famous.

Numerous individuals don't think about the principal vechicle of Chevrolet.Others know more about the main auto that Portage Worked in 1903. In 1911, The Chevrolet Engine Organization framed by a Belgian race auto driver named Louis Chevrolet.

The Stock Market is a vast and confusing setting. It has influence on many aspects of the economy like pensions, bond markets, and even retirement accounts. However, many aren 't educated about how the Stock market works, how it affects the economy, the difference between stocks versus bond and mutual funds, nor the amount of illegal activities taking part within the stock market.

Gittman (2004, pp. 312) divided stock into two types, such as common stock and preferred stock. He also showed that dividends are the outcome of investment. So, common stocks are an ownership claim against primarily real or productive asset (Higgins, 1995), but he also said that if the company prospers, stockholders are the chief beneficiaries, if it falters, they are the chief losers. Smith (1988) presented that stocks are one of the most popular forms of investment. People buy stocks for various reasons: some are interested in the long-term growth of their investment by buying low priced stock of a new company in the hope of substantially growth of share price over the next few years. Another reason he suggested that in a well established firm stockholders expect the stock growth will be stable over the long run. (Smith,1988).

hevrolet colloquially referred to as Chevy and formally the Chevrolet Division of General Motors Company, is an American automobile division of the American manufacturer General Motors (GM). Louis Chevrolet and ousted General Motors founder William C. Durant started the company on November 3, 1911 as the Chevrolet Motor Car Company. Durant used the Chevrolet Motor Car Company to acquire a controlling stake in General Motors with a reverse merger occurring on May 2, 1918 and propelled himself back to the GM presidency. After Durant's second ousting in 1919, Alfred Sloan, with his maxim "a car for every purse and purpose," would pick the Chevrolet brand to become the volume leader in the General Motors family, selling mainstream vehicles to compete with Henry Ford's Model T in 1919 and overtaking Ford as the best-selling car in the United States by 1929. .[3]

At that time General Motors only owned Buick, in 1909 Durant bought more and more brands such as Cadillac or Pontiac.

During the 2nd half of the 19th century New York City became the central financial center of the United States. After that the New York Stock Exchange became the number one trading center. The reason for this being that its members focused on buying securities of larger corporations. At that time all the smaller stocks of smaller companies were handled on the streets of downtown New York City. In 1908 these brokers formed the New York Curb Agency which is now known as the American Stock Exchange. It was renamed to this in 1953.