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Why the Stock Market Crashed, the effect this had on the American People and how it affected the economic structure of the United States.
The 1920's were a time of unbelievable prosperity. The stock market was going through the roof and the United States seemed to have the formula for limitless prosperity. However, the same formula that generated all of that profit would also be the cause of Black Tuesday. For five years prior to 1929, the stock market had been characterized by rising prices; there was an enormous "bull market."
One of the causes for the stock market rising was the rising stock dividend. New investors entering the market, who viewed it as an easy way to get rich quick, propped up the stock market. However,…
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