shares of "Hevini Enterprise’s stock for $5.00 a share, you spend $150.00. Then you sell 20 shares to your friend Joe at $20.00 a share. That means that you make a net income of $250. This is the reason that the Stock Market is so popular with investors. This is how investors make their money.A stock is a certificate of a share of ownership in a business corporation, entitling it's owner to dividends, that is, a share of the profits, and to a vote in that firm.But, there are a number of parameters, which can trigger the stock crashes, such as illegal activities, government policies, trade and budget deficits. The main affects of the stock crashes were the general investors, who have faith in their stock markets, economical system and financial solidarity; and the growing economy, which tried to be stabilized after bloodiest world war I. The 1920s began with the closing of the bloodiest war the world had ever witnessed. The nation was tired and in trouble, adjusting to peacetime living (Analytical Shah 3Essay on the 1920’s, 2000). In the later half of 1920s things were really rocking in the US and around the world. The rapid increase in industrialization was refueling growth in the economy and technology improvements had the leading economists believing that the upraise would continue. During this period, wages increased along with consumer spending and stock prices began to rise as well. Billions of dollars were invested in the stock market as people began speculating on the rising stock prices and buying of margins. (Analytical Essay on the 1920’s, 2000). So, you might think, how would these stock markets crashes have occurred? Since massive fraud, illegal activities, programmed trading could be some of the main causes of stock crashes. None of leading economic analysts has figured out yet after 75 years. But, number of analysts tried, why and how it happened. They figured out that in past and in future there are n...
