TAILIEUCHUNG - Elaine Scott - Stocks And Bonds Profits And Losses - A Quick Look At Financial Markets 1985_4

Tham khảo tài liệu 'elaine scott - stocks and bonds profits and losses - a quick look at financial markets 1985_4', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | them in the stock market and that s how some of them got in trouble You have seen that the stock market goes up and down for many different reasons. When the market is bearish the average price of a share of stock tends to go down. However the market usually corrects itself and in time investors who are bullish buy stock again and the market goes up. It s a balancing act a bit like a seesaw and as long as the bulls balance the bears things are all right. But you know what happens when someone abruptly gets off a seesaw it crashes. In 1929 many people got out of the stock market and it got so out of balance that it too crashed. The reasons for the Crash of 1929 are very complicated and no one fully understands all of them even to this day. In the fall of 1929 the market turned bearish. Investors suddenly decided that they wanted to sell their stocks in order to get their profits. As this profit taking increased the prices of stocks fell. When other investors saw that the market was falling they hurried to sell their stock too before it fell any more. With all of this money being taken out of the stock market many businesses failed and the people who worked for them lost their jobs. That complicated matters further because without a job people have no money to buy goods and services. When there are no customers to buy their goods or use their services still more businesses can fail. To make matters worse during this time people went to the banks to withdraw what money they had on deposit there in checking and savings accounts. Many of the banks could not give people their money because the banks had invested it in the stock market and lost it When depositors began to hear that the money in some banks was not safe they became frantic. All over America people raced to their banks demanding their money. When most of a bank s ------- 23 - depositers want their money right away the condition is called a run on the bank. Because of the runs many banks failed they had lost

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