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The Stock Market Crash and

the Great Depression


What is the Stock Market?
• Place where you can
invest in businesses
• A stock is a “piece” of
a business
• Business does well:
Value of Stock goes
up!
• Stock market
determines the
health of an economy
Why did the market crash? (long
term)
• Many people bought
stocks on margin—
like a loan
• Companies lied about
their profits
• Republican
Presidents believed in
laissez faire
• Stock market was not
regulated by
government
What were the effects of the
Crash?
• Some investors
committed suicide
• people who never
owned a single
stock lost their jobs,
farms and homes
• triggered crisis
known as the Great
Depression
• lasted from 1929 to
1941 when America
entered WWII
Unemployment 1925-1933

14
Unemployed (in millions)

12
10
8
6
4
2
0
1925 1926 1927 1928 1929 1930 1931 1932
Year
Question 1: How many people were unemployed in 1925? In
1929? In 1932?
Wheat Prices 1925-1933
Price per Bushel (in

1.5
dollars)

0.5

1930
1925
1926
1927
1928
1929

1931
1932
1933
Year

Question 2: How much did a bushel of wheat cost in 1925? 1932?


StockPrices 1925-1933
Great Crash
30
AverageMontly Value$

25
20
15
10
5
0
1925 1926 1927 1928 1929 1930 1931 1932 1933
Year
Question 3: What was the average stock value in 1929? 1932?
Number of Suspensions (in BankSuspensions 1925-1933

5
4
thousands)

3
2
1
0
1925 1926 1927 1928 1929 1930 1931 1932 1933
Year

Question 4:How many banks were suspended in 1925? In 1933?

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