The Wall Street Crash of 1929 began in late October 1929 and led to the Great Depression. Stock prices had been rising rapidly in the late 1920s as companies prospered in the post-WWI economic boom. However, overproduction led to falling profits, and investors began selling off their shares, causing prices to plummet. This triggered widespread panic selling and the crash, with stock prices falling over 20% in two days. The crash had devastating consequences as banks and companies failed, unemployment rose over 20 million, and the US economy severely contracted for years.

1. The Wall Street Crash of 1929
By Maia Cortés, Carlos Esteban,
James Albasini and Carina Thompson

2. Shares & the Stock Market
• Companies borrow money to
pay for equipment or staff etc
• Investors get a share of the
profit the company makes
• ‘Shareholders’ can sell their
shares on the stock market.
• This is based in Wall Street,
New York
• Prices can change every day
according to how well the
company is doing.

3. The “Roaring” 20s
1. US industry had been boosted by the end of the
First World War (ended in 1918)
2. Higher Purchase- people could buy on credit.
There is massive consumer spending.
3. Mass Production
4. Confidence

4. The “Roaring” 20s
• With more money to spend people invested on the stock market.
• President Hoover’s aim: “a chicken in every pot and two cars in
every garage”.
BUT
• 50% of American families earned less than $2000 a year
• American Industry was producing too many goods

5. The 1920´s Stock Market
• American industry booms, price of shares move up
• Investors sell their shares at higher prices and make huge
profits
• More people invest , pushing prices higher
• The idea was to
“Get rich, quick”

6. Beginning of the Crash
20 million shareholders
by summer 1929
Prices reach an all time high
Experts start to worry
Public doesn´t.
Car and Steel Production falls
Profits Fall
People start to Sell

7. Crash
• Sat 19th Oct - 3.5 million shares sold. Prices fall.
• Mon. 21st Oct - Over 6 million shares change hands. There are still
buyers on the market
• ‘Black’ Thursday - 13 million shares
sold. No buyers found
• Sat 26th Oct - President Hoover “The
fundamental business of the country, is
on a sound and secure basis”
• Tuesday 29th Oct - 16 million shares
sold. No buyers found

8. Causes
Overproduction
Stocks of unsold goods
Demand falls
Profits Fall
People start to sell
shares
People panic =
Massive selling
CRASH

9. Consequences
• 1616 banks go bankrupt
• 20,000 companies go bankrupt
• 12 million people out of work
• No people buying – more of the above.
• No money circulation – more of the
above
• No support system for the unemployed.
• Many homeless, some even die of
hunger.
• 23,000 people committed suicide in one
year
• The Great Depression

10. Consequences
14
12
10
8
6
4
2
0
200
400
800
12.00
12.80
1929 1930 1931 1932 1933
Number of
Unemployed
(million)

11. Consequences
Fred Bell was a wealthy
businessman before the Wall
Street Crash. He became one
of the many unemployed men
who tried to make a living by
selling apples in the street