Question

Who were the first individuals to be hit the hardest by the stock market crash and the Great Depression?

Answer 1

The first people to feel the effects of the stock market crash were those who had unwisely spent their money. Most people bought large appliances, etc. on credit or with an installment plan which meant they only had to pay a little bit every month until the product is paid off. These people also saw the "get rich quick" aspect of the stock market and probably invested in it. When the stock market crashed, all of their money went with it and they were unable to pay for the rest of the items the bought on credit. When they tried to pull their money out of the bank, they found that the banks had also invested the patron's money in the market and the banks failed. This caused many people to go into debt and they had to foreclose their homes. 

Answer 2

Answer:

Investors were the first individuals to be hit the hardest by the stock market crash and great depression.

Explanation:

First of all, we have to understand that "investors" include everyone who had money invested in the market. They were from different backgrounds, from Farmers to lawyers. Just investors. Second, this happened because, in the previous year of the depression, there were a lot of expectations about the performance of the companies. So, people bought big amounts of stock at any price and that made the stock's prices to increase. Then, when people saw the high escalation of stock prices they were offered margin options to keep buying stock. This was credits with borrowed money. Third, when the expectations weren't accomplished by the companies, the prices of their stocks went down because people who saw the results sold the stocks, then "panic selling" occurred and the stocks depreciated in general, even from companies that were doing well. Nevertheless, the market crashed and the people who had money invested and didn't sell at the first moment after the results reports were delivered lost money. Furtherly, the ones who bought on margin were requested payment for their loss. So, investors were the first who suffered the consequences of the market crash and the great depression. Then everyone who had a credit on the bank and everyone in the first need product industry, because prices had to go down to be bought by people.