The Stock Market Crash of 1929

          The most unfortunate event that had caused the Great Depression was the crash of the Stock Market in 1929. Many people in the 1920's percieved the Stock Market as a "get-rich-quick" scheme, and even thought they knew about the risks, they had still tried it. Many people were desperate for money that they followed a process known as "Buying on Margin", which is the purchasing of part of a share with whatever money you have, and borrowing whatever else needs to be paid from their broker. However, if the price of a share had dropped, a Margin Call was called, a Margin Call was an immediate payback of the loan issued by the Broker.

"Buying on Margin" Process. Showing how it works and
what happens when the stock price of the share rises
or drops.

          On March 25, 1929, the Stock Market had suffered a "mini-crash". 7 months later, on October 24, 1929, the prices of stocks had plummeted, which marked the start of the Crash, this day was known as Black Thursday. To fix this problem, bankers had decided to put all of their money together and then invest in the Stock Market. 4 days later, on October 28, the Stock Market had crashed again, but no one had tried to fix it. The next day, October 29, 1929, also known as "Black Tuesday", prices fell again, and continued to fall. Because of this, many people had lost their faith in banks.

A newspaper previewing Black Thursday