Flashcards in The Stock Market and Wall St. Crash Deck (10):
In 1920s by what per cent on average did share prices go up by?
What was 'Buying on the Margin'?
Borrowed money to buy shares, confident they could sell them on for a good profit, therefore paying back the loan with interest.
What did confidence in the stock market and business mean for many ordinary Americans?
Ordinary Americans felt they could invest on the stock market and make a quick profit
How were banks involved in the stock market?
- They allowed people to loan money using their homes as guarantees
- Banks invested on the stock market with people's savings
- Banks loaned out more money than they had (they were so confident loans could be paid back)
In what month in 1929 did some investors start to worry and started to sell their shares on the stock market?
On 29th October 1929 how many shares were sold at the Wall Street Stock Exchange in New York?
Share prices in radio were worth 505 cents on 3rd September 1929. How much were they worth by 13th November 1929?
What happened as many flocked to sell their shares?
- Share prices fell, more wanted to sell shares, no one wanted to buy so share prices fell even further
How much money did the Vanderbilt family lose from the Wall St. Crash?
$40 million (despite losses still remained extremely rich)