1854794
Description
Mind Map by Niamh MacElvogue, updated more than 1 year ago
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Created by Niamh MacElvogue
almost 10 years ago
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Reasons for
increase in
buying/selling
shares
- Naivety
- Because of the boom
poorer people had more
money that they spent
on shares not really
appreciating the risk
- Because of the boom
poorer people had more
money that they spent
on shares not really
appreciating the risk
- Confidence in current
economic climate
- Increased value of shares
e.g. Detroit Edison: August
1928 - $205, October 1929 -
$350
- Increased value of shares
e.g. Detroit Edison: August
1928 - $205, October 1929 -
$350
- Success stories
- Easy to borrow money
- Investors had
borrowed a
total of $8.5bn
- Investors had
borrowed a
total of $8.5bn
- Speculation
- Advice was offered in favour of
buying shares with people being
promised $80,000 for saving just
$15 a week to spend on shares
- Advice was offered in favour of
buying shares with people being
promised $80,000 for saving just
$15 a week to spend on shares
- Low return from
bank accounts
- annual rate of
interest 7% - fairly low
- annual rate of
interest 7% - fairly low
- Greed
- Up to 25m
Americans became
involved in the frenzy
- Up to 25m
Americans became
involved in the frenzy
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