Black Thursday Stock Market Crash Essay -- American History, Great Dep

In early 1928 the Dow Jones Average went from a low of 191 to a high of 300 in December of 1928 and peaked at 381 in September of 1929. 1929) It was anticipated that the increases in earnings and dividends would continue. (1929) Price to earnings ratios come up from 10 to 12 to 20 and higher for the commercialises favorite stocks. (1929) Observers believed that stock market prices in the first 6 months of 1929 were high, while others saw them to be cheap. (1929) On October 3rd, the Dow Jones Average began to drop, declining through knocked out(p) the week of October 14th. (1929) On the night of Monday, October 21st, 1929, rim speaks were heavy and Dutch and German calls came in to sell overnight for the Tuesday morning time opening. (1929) On Tuesday morning, out of town banks and corporations called in $150 million of call loans, and Wall Street was in a panic before the tonic York Stock Exchange opened. (1929) On Thursday, October 24th, 1929, people began to sell their stock s as sporting as they could., sell orders flooded market substitutions. (1929) This day became known as macabre Thursday. (Black Thursday) On a normal day, only 750-800 members of the refreshful York Stock Exchange started the exchange. (1929) There were 1100 members on the floor for the morning opening. (1929) Furthermore, the exchange directed all employees to be on the floor since there were many margin calls and sell orders placed overnight, extra telephone staff was staged at the members boxes around the floor. (1929) The Dow Jones Average closed at 299 that day. (1929) On Tuesday, October 29th, 1929, the break in began. (1929) Within the first few hours , the price fell so distant as to wipe out all gains that had been made the entire previous(prenominal) year. (1929) This day the Dow Jones... ...cial reports were reliable. After the crash, the Securities and Exchange Commission (SEC) was established to law vote down the law and to punish those who violated. (1929) Also during the crash 4,000 banks failed, for the simple fact that the banks ran out of money. Four years later, congress passed the Glass-Steagall Act, which essentially banned any linkup between commercial banks and investment banking, to ensure that is would never happen again. The federal Reserve and other banking regulators have softened some of the Acts separation of securities and banking functions by letting banks sell certain securities through affiliated companies. (1929) Bibliography 1. c Black Thursday The 1929 Stock Market Crash. www.letsfindout.com. 2. 1929 Stock Market Crash. www.arts.unimelb.edu. 3. 1929-1931. Annals of America. encyclopaedia Britannica Inc. Volume 15 32-39