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Financial Collapse - Coggle Diagram

- - - - Middle-class people began buying stocks
        
        System worked while prices rose - if fallen, investors had no money to pay loan
        
        Some investors began to think stock prices were too high - started selling stocks thinking they would go down
        
        Downslide of stock prices occurred
        
        Panic resulted
        
        Everyone wanted to sell stocks - no buying
        
        Prices plunged to a new low
        
        After 16 million shares of stock were sold - market collapsed
        
        Depression
        
        Stock Market Downfall
        
        Value
        
        Happened on margin: paid small % of stock's price as a down payment - borrowed rest from stockbroker
        
        How did margin buying contribute to the stock market crash?