--%>

Define the term Stock Market crash

Stock Market Crash was responsible for the Great Depression. Middle class families lost all their savings as they had gambled the market on margin.Those banks which were under the loan ofbrokers’ started removing money out of the savings accounts of simple, frugal people who had kept their money in the bank assuming it to be a treasure house where their money was kept safe from thieves and fires.Corporations,whose cash assets were reduced or completely finished, reduced their production or closed down completely.People were thrown out of work and those who survived got their wages cut marginally. More and more businesses and factories closed their doors. Unemployed workers who had taken out mortgages were unable to pay back the amount and lost their homes. There was not enough very rich had to sustain Five and Dime stores, beauty parlors, and manufacturers of vacuum cleaners so they also got locks on their shops.

   Related Questions in Corporate Finance

  • Q : Operational efficiency and

    Distinguish between Operational efficiency and informational efficiency?

  • Q : Explain accurately value bond options

    If the model could not even find bond prices right, how could this hope to accurately value bond options?

  • Q : What are Workpapers Workpapers : In

    Workpapers: In finance world, work papers are documents which are created during the procedure of computing the financial records of a business or individual. The accounting professional which is tasked with examining the book-keeping of a business mi

  • Q : Calculating the Cost of Equity You are

    You are an analyst in the financial division of Flipper Industries (FI) which has a beta of 1.80 (you are risk-philic, so you enjoy the thrill of working somewhere so risky). The company just paid a dividend of $1 and dividends are expected to grow at 5% per year. The

  • Q : Determining Profitable purchasing ABC

    ABC Corporation is interested in purchasing a machine which will cost $50,000, and it will depreciate it on the straight-line basis over a 5-year period. The machine is predicted to last for 7 years and then Milan will sell it for $5,000. The expected earnings before

  • Q : Finance You expect KT industries (KTI)

    You expect KT industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 12%. The value of a share of KTI's stock is clos

  • Q : Explain the way of estimating an average

    Explain the way of estimating an average.

  • Q : Illustrates cost of its equity is zero

    Is this true that the cost of its equity is zero, if a company does not distribute dividends?

  • Q : What is Financial Analysis Financial

    Financial Analysis: It is the investigation and interpretation of financial statements and associated financial reports. Trained and certified accountants generally complete this kind of analysis. The role of a financial analyst is to

  • Q : Who published a book regarding

    Who published a book regarding option formula and risk neutrality?