Laframboise,Amy_The Great Depression Notes - The Great Depression Notes Vocabulary Word Definition 1 Black Tuesday prices took the steepest dive 16

Laframboise,Amy_The Great Depression Notes - The Great...

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The Great Depression Notes Vocabulary Word Definition 1. Black Tuesday October 29, 1929: prices took the steepest dive. 16 million shares of stocks were sold, and the value dropped by 10%. 2. buying on margin Putting only 10% down and borrowing 90% 3. Smoot-Hawley Tariff Went into effect on 1930 just after the stock market crash. It raised customs duties on thousands of goods and contributed to a reduction of U.S. trade by more than half. 4. Hoovervilles Americans found Hoover’s lack of leadership frustrating. The shanty towns that sprung on the outskirts of cities were called Hoovervilles. 5. The Long Bull Market A long period of rising stock prices Approximately 10% of American household owned stocks. Buyers engaged in speculation which meant they were betting the market would continue to climb, thus enabling them to sell stock and make money quickly Many investors bought stocks by paying only a fraction of the stock price and borrowing the rest To protect a loan, a broker could issue a margin call, demanding the investor repay the loan at once.

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