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    Crash of 1929 - Adrián García

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    Crash of 1929 - Adrián García

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    Crash of 1929 - Adrián García

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    Look at graph of the New York stock exchange prices and answer the following questions:

    a) Why there’s a period of expansion between 1925 and 1929?


    This period of expansion was created by
    several factors:

     The American way of life became a


    model for the citizens, which their
    values underpinned it, ensuring
    wealth and well-being for them.

     Economic growth based on industrial


    production for a mass consumption
    society. For example, Taylorism and
    Fordism helped increase productivity
    and reduce costs.

     This prosperity was reflected in a huge


    stock market boom, profits from good business rise in demand for shares.

    b) What happened the 24 of October of 1929?

    That day rumours about a possible decrease in shares prices unleash the panic,
    everyone wanted to sell and no one wanted to buy shares. This is known as black
    Thursday.

    Was the first day of the stock market crash of 1929. That was the worst stock market
    crash in U.S. history. It kicked off the Great Depression.

    c) What were the consequences of the stock market crash?

    The stock market crash trigged lots of consequences:

     Many investors were ruined and panic spread.

     Citizens wanted to withdraw money from their banks, but


    there were unable to provide cash.

     Dozens of banks were forced to close: they could not collect loans provided to
    individuals.

     Industry and agriculture were also affected.


     Widespread economic recession: Unemployment, decline in
    consumption, factories shutdown and poverty.

    d) If you had bought shares in 1925, how much would they have appreciated in 1929?
    Indicate the percentage.

    I choose the highest peak of each year for do this.

    If I had bought shares in 1925, in 1929, they would have risen 115%.

    e) If you had bought shares the 23 of October of 1929, how much would they have
    devalued in 1932? Indicate the percentage.

    If I had bought shares the 23 of October of 1929, in 1932, they would have devalued
    180 %.

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