Log in Sign up. How can we help? What is your email? Upgrade to remove ads. One who buys property, goods, or financial instruments not primarily for use but in anticipation of profitable resale after a general rise in value. This kind of buying stocks was usually only used by poor and middle class people.

They would buy the stock, but only pay for part of it and borrow money from the stockbrokers to pay the rest. Then when they sold the stock for a higher price, they would pay the broker off and keep the rest of the profit.

This practice led to the great depression, because the banks couldn't get their money back when the stock market crashed. Black Tuesday October 29, This date signaled a selling frenzy on Wall Street--days before stock prices had plunged to desperate levels.

Investors were willing to sell their shares for pennies on the dollar or were simply holding on to the worthless certificates. Shanty towns that the unemployed built in the cities during the early years of the Depression; the name given to them shows that the people blamed Hoover directly for the Depression.

RFC was an independant agency of the United States government. It granted over 2 billion dollars to the local and state governments. It was charted under the Herbert Hoover administration. Gathering of WWI hard-hit veterans demanding the immediate payment of the deferred bonus promised by Congress and payable in ; converged in Washington insetting up an enormous "Hooverville"; when several thousand refused to decamp, they were evicted by Hoover with bayonets, fire, and tear gas, bringing even more criticism to Hoover and his administration.

Gross National Product GNP. The economic crisis and period of low business activity in the U. One of the darkest moments in World History. A series of dust storms in the Central U. S caused by many years of bad farming techniques.

The Economic Causes and Impacts of the Stock Market Crash of (Fall ) - Historpedia

It caused many farmers to move west as well as remove the top soil. This was the nickname given to farmers and their families who came from the panhandle regions of Oklahoma or Texas to California in search of the "Promised Land". It refers to the idea that each individual should be able to help themselves out, and that the government does not need to involve itself in people's economic lives nor in national economics in general.

It raised duties on agricultural and manufactured imports. It may have contributed to the spread of international economic depression. Name two signs of weakness in the American economy in the s. One sign of weakness was the installment buying, another was the buying on margin.

How would a stock market crash affect us? – Fabius Maximus website

If these weren't to be fixed, America would go in debt and the wealth would spread unevenly which ended up making the stock market crash.

Why is it significant that much of the nation's wealth was owned by a small number of people? Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between U.

This imbalance of wealth created an unstable economy. How might the lack of available credit hurt the nation's economy in the s? The lack of credit hurt the nation's economy in the 's because it meant that people could not buy the things they needed to survive and thus put money into circulation which is required for a healthy economy in the United States. How did the how much does a rite aid pharmacy cashier make affect individual investors, brokers, and banks?

The stock market crash devastated the American economy because not only had individual investors put their money into stocks, so did businesses. When the stock market crashed, best penny stock online broker lost their money.

Why did the stock market crash have such a powerful impact on the overall economy? Due to the fact that the stock market is the central part of a large economy's health and well-being, the stock market crash of the led to major instability, not just in the United States but around the world.

Defend Hoover's belief that the economy would soon recover. The stock market is constantly fluctuating. What can you infer from the fact that the shantytowns of homeless Americans came to be known as Hoovervilles? They were named after the President at the time, Herbert Hoover, because he allegedly let the nation slide into depression. What do you think the political effect of the Great Depression on President Hoover will be?

Although Hoover has been blamed for the stock market crash, he, in fact, warned President Coolidge in about the dangers of excessive stock market speculation.

He again expressed concern while running for president in What was the general reaction of the American people to Hoover's performance?

Many Americans the best earnings in the binary option strategy Hoover's compassion and his how did the stock market crash affect individual investors brokers and banks to give direct relief to Americans it became less and less understood by Americans.

His actions as President how did the stock market crash affect individual investors brokers and banks questioned by many people and people began to attack him for his actions or inaction. How did Hoover's core beliefs contrast with what many Americans wanted? While Americans wanted governmental interference to help aid people directly, while Hoover wanted aid the people as little as possible.

What are some relief programs that Hoover's Democratic opponent might suggest? Signal trading day forex indonesia of Hoover might suggest that he could have found ways to help the American public by setting up food programs, such as food stamps.

He could have lower taxes on the public instead of increasing them, he could have lowered taxes on businesses and farmers in particular. What economic factors and conditions made the American economy appear prosperous in the s?

People were spending money with their higher wages. How does the stock market work?

Orders come in through brokerage firms that are members of the exchange and flow down to floor brokers who go to a specific spot on the floor where the stock trades. At this location, known as the trading post, there is a specific person known as the specialist whose job is to match buyers and sellers.

Who ran in the election of ? In what ways did this election represent a conflict over values?

Ch The Great Depression Begins (Cortese) Flashcards | Quizlet

Herbert Hoover and Al Smith ran in the election of Hoover and Smith represented different backgrounds, religious ideas; each appealed to different groups of Americans. Broker forex yang paling terpercaya the prosperous s, what were the basic economic weaknesses that existed? Uneven distribution of wealth: The remaining majority got the rest.

Consumers relied too much on credit to buy products. By the end of the 's, they had reached their credit limit, which meant they stopped buying. What is the practice of buying stocks with loans from stockbrokers known as? What was a margin call? Demand for payment of a margin loan if a stock's value fell below a certain point. What did the board of the Federal Reserve System do when they noticed all of the buying of stock on margin?

The Federal Reserve board decided to make it more difficult and more costly for brokers to offer margin loans to investors. Their move was partly successful. Borrowing from banks by brokers began to decrease, but it was replaced by money from a new source. Large American corporations began providing brokers with the cash to make margin loans to investors.

As a result, the run-up stock market continued despite the Federal Reserve's actions. What events led to the stock market's crash in October ?

Big investors get nervous.

Sales of some manufactured goods began to drop. Rumors spread that some big investors were getting ready to take their money out of the stock market sell their shares. Bc people were only selling stock and not buying stock prices PLUNGED. Market was back to normal on Friday, Oct. Some stock even rose in value. What is the infamous name for the worst day of the crash? What were the effects of the crash on the economy of the United States and the world?

On individuals, banks, and overseas. How did Hoover view the relationship between government and business? Between government and the individual? He favored a federal government that played as little role as possible in the affairs of business. Individualism did not rule out cooperation in Hoover's view.

He believed that businesses should form voluntary associations that would make the economy fairer and more efficient. Hoover wants government to be very "hands off" with the individual. What is the associative state and what was its greatest accomplishment? Associative state- Hoovers favored voluntary partnerships between business associations and government. Its greatest accomplishment was the hoover dam.

This dam provides electricity and water. This benefits the public.

Stock Market Crash of October - Social Welfare History Project

How did Hoover's beliefs dictate his initial response to the economy after the stock market crash? Because now Hoover does not want the government to help out those who lost jobs. Were Hoover's direct actions effective? No, he could not rally cooperation. Individuals made decisions according to their own economic interest. He tries to enforce the Smoot Hawley Tariff.

He does this to help American Business by making imported goods more expensive. It ends up hurting trade. What was the Bonus March? How did it affect Hoover? The Bonus March was done by the bonus army World War 1 veterans they are demanding their pay from war. It damaged Hoover's reputation. The photos of armed soldiers fighting with unarmed, unemployed veterans deeply troubled many observers.

Why did Hoover not even attempt a large campaign for re-election in ? Because it seemed certain that the voters would reject him.