Wall Street Crash of 1929

Wall Street Crash of 1929
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Wall Street Crash of 1929
The 1920s saw a period of expansion of the United States (US) stock market. The prices of the stocks rose to great heights and many investors from banks, cooks, and drivers all rushed to invest the surplus because they felt the market was stable. Many investors withdrew money from banks channelling to the Wall Street while others mortgaged their homes to invest in the stock market. A decade of stock success had made speculation in stocks a common practice and even when the market showed weakness, investors still speculated that it would keep increasing. Additionally, in the mid-1929 many companies had concentrated in over production since people had money and were making purchases. However, the overproduction of goods led to surplus supply in various areas like steel, crops, and iron. These companies were eventually forced to sell their goods at a loss, and th...