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cluponka [151]
2 years ago
5

How did people first react to the stock market crash

History
1 answer:
Gnesinka [82]2 years ago
3 0

Answer:

Explanation:

Panic and disbelief and astonishment.

Many people were on margin (that's when you put your stock up for security and the bank makes you a loan to buy more stock. Effectively the bank owns the stock).

"Everybody's doing it.  You can make scads of money doing it."

When the market crashed, in many cases it took everything you  yur had. Those who knew what was going  on panicked. Some jumped owt windows. I good remainder when this happened was roughly 20%

Those how didn't know what was going on phoned their brokers who likely told them to hang on -- this was only a correction. Other brokers advised they sell which only intensified the selling pressure. There was no way out. People who don't understand margin should never use it.

Many banks closed their doors. If you want to watch a movie on the subject, you should watch A Wonderful Life. It's a classic. Every library has it or can get it for you.  

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