One factor that contributed to the stock market crash and the Great Depression was people investing too much money.
- In the 1920s, thousands of Americans bought stock on credit.
- The stock market was hit by selling, causing prices to fall.
- Within a few weeks, the value of stocks listed on the Stock Exchange fell by some billion.
- A chain reaction followed over the next few years.
- Unemployment soared, farmers lost their land, banks were closed down.
- People lost all their money as they brought stock which was useless with the fall of the stock market.
Therefore we can conclude that the stock market crash related to the purchase of stock in enormous number.
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