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On Thursday, October 24th, 12,894,650 shares changed hands on the New York Stock Exchange, breaking the previous record of 3,875,910 set the previous year (Crash pp). So busy was the Exchange that "issues were behind as much as one hour to an hour and a half on the tape" and phones were jammed, causing crowds to gather outside in an effort to communicate which led police to be called to control the riot of investors (Crash pp). By the weekend the market had returned to Thursday's status, but on Monday, 28th the volume was huge-over 9,250,000 shares traded, the losses were great as well, but unlike Thursday, there was no dramatic recovery (Crash pp). On Tuesday, the 29th, 16,410,030 shares were traded, and in order to get out, one had to get his broker to sell the stock at market value, however, most of the stock was bought on margin (Crash...
People were paying interest on loan for a stock which itself is being used as collateral, called a security, thus, if the stock suffered a loss, one had to cover the call for margin (Crash pp). Investors began dumping their securities, causing more downward pressure on the market, as stockbrokers tried desperately to get in touch with customers for margin (Crash pp). The panic to sell prevented recovery and by closing bell the market had crashed (Crash pp).
Works Cited
Causes of the Stock Market Crash
http://www.angelfire.com/co/pscst/stock.html
Gusmorino, Paul Alexander. Main Causes of the Great Depression. May 13, 1996. http://www.gusmorino.com/pag3/greatdepression/index.html
The Crash of 1929
http://www.btinternet.com/~dreklind/threetwo/thecrash.htm
Works Cited
Causes of the Stock Market Crash
http://www.angelfire.com/co/pscst/stock.html
Gusmorino, Paul Alexander. Main Causes of the Great Depression. May 13, 1996. http://www.gusmorino.com/pag3/greatdepression/index.html
The Crash of 1929
http://www.btinternet.com/~dreklind/threetwo/thecrash.htm
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