The 1920 Stock Market
The Roaring Twenties seemed to people as if it was a endless era of prosperity. In the 1920s, large number that continued to build up grew interest in Wall-Street and buying stocks. “Buying on Margin” was a smart new innovation that was attractive to buyers, where a person was granted permission to buy the stock by using expending in cash, even in the smallest percentage. The balance for the stock was covered by a broker where a loan is provided, but if the broker did not receive the money the stock was taken as collateral. More and more people became interested as they saw the income of their peers flow right in their hands without doing a single thing. Stock market was becoming a huge industry, with the increasing number of people that were inexperienced with stocks didn’t know a fair and good deal, so bidding was sky-high prices. In the late 1920s, the increasing number of people wanting to be in the stock market had weakened, due to the inexperienced investors who wanted a piece of the action, the inexperienced and small investors put all they money they had plus more, who just wanted out flooded the market wanting to sell and get out of the industry. Leading New-York bankers grouped together and try to solve the crisis they were hit with, gathered all information and resources, buying out the stock market most about the current market value. On Thursday the 24th of October 1929, the vice president of the New-York Stock Exchange and Broker for the House of Morgan, Richard Whitney gave an attempt to solve the crisis, and it came back with the tactic working. But it wasn’t for long, On Tuesday the 29th of October 1929, the market had crashed “the bottom fell out”, billions of dollars were lost, whole fortunes were wiped clean in hours, within a couple weeks the value of stock exchanged dropped, and within a couple years the market value of most stocks were worth 20% of what stocks were in the rise of the stock market. The United States economy was still standing up strong.(Stock Market Crash of 1929)