Black Tuesday was Tuesday, October 29, 1929. This was the day the New York Stock Exchange crashed. This was the single largest crash in the country. Black Tuesday hit Wall Street as investors traded 16 million shares in one day on the New York Stock Exchange. Black Tuesday wiped out thousands of investors and billions of dollars were lost. Black Tuesday was an event leading up to the stock market crash. As a result numerous Americans lost all to a lot of their savings. Black Tuesday was also known as the beginning of the great depression which was economic recession that made Americans struggle to make money and provide food, shelter and clothing for their families.
The great depression was also cause by the poor distribution of wealth. The top 5% of the wealthy earned 70% of the income. People spent less because of the lack of money they had and industries struggled. There was high speculation in stocks.
During the 1920s there were countless Americans who were interested in Wall Street and in buying stock. The United States had of prosperity and success which then average Americans could buy luxury items. For example they had radios, vacuum cleaners, and automobiles. They could pay monthly installments and buy on credit.
Buying on credit allowed them to buy very expensive and nice items that they wanted but they didn’t have the money at the time to buy these things. There was also a down side to buying on credit which was that people would buy things that are very expensive and they couldn’t pay back the money they owed. This made many Americans deep into debt.
Buying on the margin is when you borrow from a broker to purchase stock. Not all stocks are able to be bought on margin. The Federal Reserve Board tells you which stock...
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...ve learned from this to make their economies better. We still are affected by this event but our country is still working to make our economy more powerful.
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