...The first crash that stock in U.S has spent was the time in the the Great Depression. The United State economy entered the Great Depression in 1929, many industries have collapsed. But at the first, stock had continued to rise and reached to the highest number of share ever. When consumer confidence disappeared in the wake of the collapse of the stock market, the decline in investment spending and factory leaders and other businesses to slow production, construction and start firing their employees. For those who were lucky to still work, salary reduction and reduced purchasing power. Many Americans are forced to buy on credit falling into debt, and the number of foreclosures and repossessions rising continuously. Adherence to the gold standard, joining countries around the world in a fixed currency exchange, help spread the crisis from the United States throughout the world, especially in Europe. The second time was in 1987. In the crash of 1987, this...
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...[pic] PREMIER UNIVERSITY CHITTAGONG TOPIC: STOCK MARKET SITUATION AND MARKET CRASH OF BANGLADESH STOCK MARKET, 2011 PREPARED TO: TANBINA TABASSUM LECTURER, FACULTY OF BUSINESS STUDIES, PREMIER UNIVERSITY CHITTAGONG. PREPARED BY: THE DOERS SEM: 8TH, SEC: A, DEPT.: FINANCE PROGRAM: BBA, SESSION: JULY ’11 DATE OF SUBMISSION: 19 DECEMBER, 2011 GROUP NAME: THE DOERS |SL. |STUDENT NAME |ID | |1 |TRISHAN CHOWDHURY |0714111851 | |2 |NISHAT FATEMA KHANAM |0714111864 | |3 |UMME KULSUM |0714111866 | |4 |ANUPAM GUPTA |0714111848 | |5 |PARTHA SARATHI ROY CHOWDHURY |0714111859 | |6...
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...Markets have been around for a really long time. No not the markets your parents go to so they can get groceries this kind of market is where the supply and demand of items are measured called the stock market. The stock market crashed on September 29, 2008. The Dow Jones Industrial Average fell 777.68 points in intraday trading. That was the largest point drop in any single day in history. It plummeted because Congress rejected the bank bailout bill. A stock market crash is a rapid and often unexpected drop is stock rates. When the stock market crashes it causes the world to worry especially when the stock market crashes in a major time period such as a war. the supply of the product is rapidly decreasing while the demand stays the same or...
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...Bangladesh stock market faces biggest crash in 55 years. If we would recall, Dhaka Stock Exchange Gen. Index (DGEN) soared to its highest levels from October to December last year, with the peak on Dec. 5, 2010 at 8,918 points. DSE’s index on Jan. 3, 2010 was at 4568.40 and went up at a staggering 4,350 points or 95.23% increase! But 2weeks ago, Jan. 10, 2011, trading on the Dhaka Stock Exchange was halted after it fell by 660points, or 9.25%, in less than an hour, the biggest one-day fall in its 55-year history. Reasons for Stock Market Crash: 1. Bangladesh was having current account surpluses (huge remittance flows). So more money was coming in than going out. It made a situation that lots of people had money in their hands. Rather keeping money at banks, they invested that money in Stock Market. Because you can earn more in a short period of time. 2. Interest rates went down. So, it was not a good idea to get around 8.5% interests per year (before tax) when inflation was around 5-7%.So suddenly, people had a lot of idle money which they were unable to invest anywhere. Anywhere except the stock market that is. Thus the joyride of equities (stocks) began and that situation is still continuing. Because of this excess flow of funds by both general investors as well as institutions (Banks, NBFI's and Insurance companies), multiple attempts by the regulator failed to cool down the market. No alternative investments were available. Plus, when you can earn 30% return...
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...A major turning point in American is the Stock Market Crash of 1929 or The Great Depression as many called it. The early 1920’s were an amazing time to live in, jobs were everywhere, money was coming in and the banks were giving out loans. The crash happened from the same policies that had made the 1920s so great. Since nobody knew how to use the stock market, and people weren’t paying back the credit that was loaned from them from the bank, is a major cause of the crash. The American people were looking for easy money through the stock market, which also caused many to be greedy, which brought many new people including immigrants into a situation they did not understand. Also, the people weren’t concerned or didn’t know that the stock market...
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...US History March 11th, 2013 Birth of the Great Depression: Causes of the Stock Market Crash of 1929 It was a time of great economic growth in the United States after World War I. The economy was growing rapidly, fueled by industrialization and the rapid development of new technologies such as the automobile, electricity, telephone, aviation and radio. Many people and businesses began investing in the stock market at this time. The stock market is the organized trading of stocks. The owning of stocks gave people partial ownership of a company while infusing cash into the company. In return, people earned money on their investment as the company grew. The stock market provides financial support required by large business to establish and expand their enterprises. This in turn allows companies to grow and increase employment, provide a community tax base, and other financial benefits for the people and the economy. In the 1920’s the stock market boomed. During the 1920’s people were enthusiastic and more willing to take risks. They brought this attitude to the stock market, causing stock prices to increase exponentially. However, the severely overpriced and unaffordable stocks and willingness of the people to carelessly invest their money lead to one of the darkest days in U.S. history: October 29th, 1929. This is the day the stock market crashed, known in infamy as Black Tuesday. The stock market crash of 1929 was caused by numerous flaws in economic policies and actions taken...
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...The stock market crash of 1929, was a dramatic decline of stock market prices and was also known as the Great Cash. The 1920s was a period of time when the U.S. stock market was expanding dramatically. Many people were warned about the stock market crash that was coming. However, investors were not afraid, instead, they believed that the stock market decline was a buying opportunity. Later on, as unemployment was increasing, stock prices were beginning to decrease. The crash began when the market opened 11% lower on October 24. The stock market crash wiped out many investors and it had many economical consequences. One of the key factors that led to the crash of 1929 was the Roaring Twenties, also known as the 1920s. At this time,...
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...The New York stock exchange saw uproar during the 1920’s. People were making more money than ever as prices for stock skyrocketed. When the stock market reached its peak, it seemed as though the market had nowhere to go but up. People in America didn't expect the stock market to fall and when it did they had no idea what to do so they withdrew all their investments which caused the stock market to crash. The fall of the stock market caused 30% of the nation’s workforce into unemployment and debt, forcing the country into a Great Depression. During the twenties many people were getting rich using buy and sell methods in the stock market, this caused the stock market to rise, and shares to become more expensive for the average buyer. Most American...
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...The all so famous stock market crash of 1929 is one of the staples in our American History that helped shaped our nation and economy to what it is today. This was one of the factors that helped the Great Depression come about. The stock market was making historical booms in 1928 that were making investors want to invest more and more money to increase their earnings. It became a national hobby. About three million Americans owed stocks but onlt half were actual buyers and sellers. Majority of people were putting their own life savings towards stocks to make them wealthy and believed they will "crush it" with earnings they will recieve. When 1929 came around stocks began to go down but investors were still hopeful it will rise again. They started...
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...DEPRESSION AND THE STOCK MARKET CRASH An Introduction The stock market crash The stock market was created on 1792 to allow stocks and bonds to be traded “bought and sold”. A “stock market crash” is the steep fall of the prices of stocks due to widespread financial panic. America experienced an era of great peace and prosperity during the 1920s. After World War I, the so-called “Roaring Twenties” economic and cultural boom was fueled by industrialization and the popularization of new technologies such as radio and the automobile. Air flight was becoming common as well. The Dow stock average soared throughout the Roaring Twenties and many investors aggressively purchased shares, comforted by the fact that stocks were thought to be extremely safe by most economists due to the country’s powerful economic boom. Investors soon purchased stocks on margin, which is the borrowing of stock for the purpose of gaining financial leverage. For every dollar invested, a margin user would borrow nine dollars worth of stock. The use of leverage meant that if a stock went up 1%, the investor would make 10%. Unfortunately, leverage also works the other way around and amplifies even minor losses. In 1929, the Federal Reserve raised interest rates several times in an attempt to cool the overheated economy and stock market. On Thursday, October 24th 1929, a spate of panic selling occurred as investors began to realize that the stock boom was actually an over-inflated...
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...The Stock Market Crash of 1929 After World War 1, the 1920’s was the time of great prosperity in the United States. Due to the new technology the economy benefited greatly. In the years leading up to the stock market crash of 1929, the stock market had gained much popularity as a way of making money. Since stocks prices had been on the rise, they gained the reputation of being a safe way to invest. For instance, from 1921-1929, the Dow Jones went from 60 to 400. Investors were becoming millionaires in an instant due to the increase in the stock market. Some investors were borrowing a lot of money from banks. Many other investors made a big mistake, mortgaged their homes and invested their life savings in stocks. After the stock market quadrupled in value, the bubble burst and stock started to go down. The depression originated in the United States, initiating with the stock market crash of October 29, 1929 (known as Black Tuesday and the red October). It quickly spread to almost every country in the world. What happen is that investment companies were deeply in debt with banks, they sold large amounts of their stock holdings in order to raise cash. Most of them went bankrupt, worsening the banks situation, which led the banks to bankrupt as well. The banks froze credit to companies, and then withdrew their investments from Europe, especially from Germany. The crisis started with the stock market, spread to the banks and then to production. According to economist...
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...Zachary Shelsby List and describe the causes of the stock market crash of 1929. Was the crash inevitable? Explain using examples from the presidencies of Harding, Coolidge, and Hoover. It was the time of the Roaring Twenties; where in the wake of the War jazz music was becoming prominent, Art Deco became popular, and cultural dynamism was emphasized. The twenties also led the United States into unprecedented industrial growth, inventions and discoveries of major importance, as well as significant changes in US lifestyle and culture. Though must prosperity was achieved during the Roaring Twenties, much despair would follow by the end of them. The 1920’s saw an increase in consumer spending as well as a large increase in economic growth. The 1920’s was also an era dominated by Republicans. The Republicans took a rather conservative approach to the economy. They forged tight and close relationships between government and big business. President Warren Harding took the White House in 1921, when the United States economy was seeing the time of a depression. Runaway inflation and a high unemployment rate swept the nation. At the time of World War I the United States economy enjoyed prosperity because of the agricultural industry. With the increase of demand came the increase of prices. With the increase of prices came the increase of output used to supply Europe. With the conclusion of the War the American agricultural industry had a massive surplus of farm goods that by...
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...Many believe Herbert Hoover is to blame for the Stock Market Crash in October of 1929. Although, he believed he was doing what was best for America, others believed otherwise. He was either looked at as one of the best presidents, or one of the worse. I believe Herbert Hoover was a strong leader of the United States before, during, and after his presidency. Herbert Hoover was born on August 10, 1874. He was born in West Branch, Iowa. Hoover’s mother and father were both Quakers. Though they didn’t stay around long of his life. At a young age, Hoover lost his mother to pneumonia, and his father to a heart disease and typhoid. Shortly after losing both parents, Hoover was sent to live first with his uncle, Allan Hoover, in West Branch. He stayed...
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...Tampico spice company was established in 1947 by a man named Jesus Martinez. Jesus Martinez was born in California before the stock market crash of 1929. During his upbringing Mr. Martinez was raised in poverty, however he continued to keep his faith in life that things one day will turn around for the best for him and his family. Mr. Martinez bought his first set of spices with what little money he could scrape up. He would go door to door selling his home packed spices in his neighborhood and surrounding markets. His little profit soon became double that, and soon after the beginning of his empire began. As time passed he increased his spices by a number of known and un-known mixtures that soon after became very popular. He later introduced herbs that helped with many home remedies to help alleviate certain body discomforts. For example one of his herbs that his Tampico brand produces is “Cilantro seeds”. The first time I seen this herb was when my wife went out and purchased a pack of it. I asked her what it’s for and she said that its to help relax the irritability of a colic prone infant. I watched her boil one tablespoon of the seeds and when it cools to the infants liking give it to him in a form of a tea. She gave it to my son. I was really thinking oh my god this is not going to work. Too much of my surprise my son within a few minutes was relaxed and was burping up a storm, that night my son had a good night’s sleep. I was leary about her giving my...
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...including banks failed and there was a huge decline in the consumer profits. The small unsecured financial institutions suffered the worst ever insolvency resulting from bank runs that characterized this period. The declines in consumer wealth were estimated in trillions of U.S. dollars. All these activities took a very short active phase, manifested as a liquidity crisis, and dated from August 9, 2007, when BNP Paribas business with three hedge funds complaining of “complete evaporation of liquidity.” The Wall Street financial crisis was a hard blow to the global economy. The events leading to such a huge downturn only unfolded later. In September 2008, many Americans were faced by an extraordinary turn of events in the Wall Street financial markets and federal government response to...
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