The stock market crash crippled the American economic system as a result of not only had individual investors put their cash into shares, so did companies. When the stock market crashed, companies lost their cash.
This is a gorgeous characteristic of investing in shares, in comparison with different much less liquid investments similar to property and different immoveable property. This requires these two events to agree on a worth.
On October 23, the stock market misplaced thirty-one factors, approximately seven p.c of its worth. By mid-November, the twenty-five leading industrial shares had dropped to 224 points, less than one-half of their value two months earlier. The market continued to decline in worth, leaving investors who had purchased stock on credit score financially destroyed.Read More