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Why Did The Stock Market Crash

342 Words2 Pages

The stock market crashed because investors began buying stocks on margin, borrowing much from brokers who, in turn, borrowed from banks, who borrowed from the savings of depositors. This saturated the market, and brokers began selling their stocks, which led prices to decrease. Other brokers called their margins, which investors couldn’t cover. Brokers started selling stocks in larger amounts, which forced prices down even more. The bottom then fell out of the market. Brokers couldn’t repay loans and people saw their savings vanish. Unemployment rose and the U.S. fell into a deep depression. Women were not affected as much as men during the depression, as men were the traditional breadwinners at the time. Women on the other hand, kept families

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