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Published byElwin Willis Modified over 9 years ago
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1920s Economy Everyone has disposable income: Suburbs, House, cars, radio, Entertainment, etc The stock market was a way to make money with extra cash The bull market was not a gamble
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Bull Market
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Bear Market 1920s, few understood the business cycle Today, we do not panic when prices begin to drop
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1929 Business sales continued Stock continued to rise Americans continued to buy stock
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Factors to the crash 1) Business prices began to fall, stock prices began to fall 2) Investors lose confidence and sell stock 3) Price Plunge (Black Thursday, Oct. 24 th ) 4) More panicked selling 5) Stock Market Crash (Black Tuesday, October 29, 1929)
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What do you do now if you bought thousands on margin buying?
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