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CAUSES OF THE WALL STREET CRASH - Coggle Diagram
CAUSES OF THE WALL STREET CRASH
Ordinary people were
getting loans
from the banks
buying and selling shares
making profit
It means buying on the margin
price of shares UP
people think that
the company was more
profitable than actually was
There was a crash
because the
price of shares plummeted
fell
Corruption
people make backhanded deals
businessman could make millions
out of the stock exchange
muche more that people
who buy the share
They could make rumors
that a company was making a lot of profit
by:
radios
people stop buying shares
mouth and mouth
newspaper
to inflate the price of that company
making money behind the scenes
people panic
so sell less shares
company fail
sell shares
noone buys them
crash
company was more profitable
than actually was now
like the situation because
the price of their company
was going up
even though it wasn't really worth it
it means that the owners
would be receiving
all of that money
OVER VALUED COMPANIES
