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Khaled Bitar

What were the causes of the 1929 stock market crash and the 1987 stock market crash? What are the differences between the causes?

In the 1920s stock was first issued by companies. Companies issued stock after they went public in order to make money. When traders buy stock, they were buying from the company and a stake in the company.
On October 24, 1929, (a.k.a. Black Thursday) the stock market fell 9% and five days later the market fell an unprecedented 17.3%. About 29 million shares of stock changed owners causing, at the time, the biggest stock market crash in the history of the United States.
In the decade before the crash, America was thriving and production was soaring. The GNP increased by 40% and average income grew 30% throughout the decade. There was an abnormally high level of investment and traders were overwhelmed with confidence.
When the stock market crashed on Black Thursday, traders were still confident because of President Hoover’s......

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Approximate Word Count: 1947
Approximate Pages: 8 (250 words per double-spaced page)

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