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Why did the Wall Street Crash occur?
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- Words:
- 540
- Submitted:
- Thu Sep 25 2003
... Why did the Wall Street Crash occur? The Wall Street Crash was when the American stock market crashed. This meant that A LOT of money in USA was lost. Businesses went bankrupt, and everyone who owned shares lost their money. Furthermore, the majority of people who owned shares had gotten the money to buy these shares by borrowing money from banks. This meant that banks also lost a lot of money. The reason so many people bought shares in the first place is because the prices of shares were constantly rising due to more people buying shares. Therefore, people were buying shares because they knew the prices were going to carry on rising. As a result of all these people buying shares, the prices of shares did rise. However, after a while, people became sceptical about the share prices. Some people began to think that the stock market was doing
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