80.5k views
5 votes
What caused the stock market crash of 1929 essay?

User Nimer Awad
by
8.5k points

2 Answers

2 votes

Final answer:

The stock market crash of 1929 played a significant role in the Great Depression, leading to the failure of banks and financial ruin for many Americans.

Step-by-step explanation:

The stock market crash of 1929 was not the sole cause of the Great Depression, but it played a significant role in the downward spiral of the American economy. Multiple factors contributed to the crash, including an ongoing agricultural recession, a stock market bubble fueled by excessive margin buying, and insider trading. When stock prices fell and loans could not be repaid, thousands of banks failed, and millions of Americans lost their life savings.

User Rhorvath
by
7.9k points
1 vote

Answer:The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.

Step-by-step explanation: