Where did the money go when the stock market crashed in

No ad for bid response id: Cannot find ad by given id: Go Log In Sign Up. What would you like to do? Where did the money go when the stock market crashed in ? Would you like to merge this question into it? Would you like to make it the primary and merge this question into it? Merge this question into. Split and merge into it. Edit Answer by MrV. The money that was tied up in the Stock Market was the paper value of the stocks that were bought and sold.

There was no regulation of the Stock Exchange at the time of the Great Depression so stocks and companies listed on the Exchange were often over-valued by the owners of the companies.

As people tended to buy one stock over another, the value of that stock increased on paper while the value of the little purchased stock declined on paper. When stock brokers started to call in the money they were owed by investors who had purchased stocks on time called margin buying , the investors would try and sell their stocks in order to pay off the broker.

What caused the stock market crash? I | Khan Academy

Since many of the other investors were doing the same thing, the value of the stock declined and people found it next to impossible to sell their stock. When the Stock Market collapsed, there was no real money at the Stock Market Exchange.

The money was in the value of the stock of the company being listed bought and sold on the Exchange. When the bottom fell out of the Market, the people who had invested money in the Market and could not sell it, never got it back.

So the simple answer is that the money just dissappeared!! Those stocks that survived the crash, and those investors who held on to the stocks they owned, may have been able to sell those stocks later on as the Stock Exchange was allowed to open under regulation by the government. If I company did not survive the crash and was never listed on the Exchange again, those investors never got any money back. Was this answer useful?

In Investing and Financial Markets , History of the United States , Stock Market. October 24, was also coined the term 'black thursday' where new york stock shares crashed, and continued to plummet for the rest of the entire month.

The market crash affected every state, including Georgia.

Georgia had it especially rough since its cotton fields were also plagued by the boll weaver bug which caused co … tton production to fall and prices to decline. In Investing and Financial Markets.

It marked the start of the Great Depression, the largest economic downturn in American history, causing millions to become jobless and thousands to lose their life savings. Pe … ople began going starving and living in bad conditions, until a series of government decisions believe it or not, gave jobs to people, and so did WWII.

Eventually the American economy regulated itself. Herbert Hoover had been in office less than 7 months when the great Wall Street crash of October , occurred. The stock market crash of took place in the state of New York and it took place in Wall Street. I am a curious character. Categories you should follow.

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What part of the body are most of the nutrients from food absorbed into the bloodstream? The exact date of the stock market crash was October 24, It was the start of the worst economic depression in the history of the United States. The Wall Street Crash of is often referred to as Black Tuesday. This was the worst crash in the history of the United States and was the beginning of the Great Depression ….

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