ter on effected the entire world. This proved how important stocks are in the flow of business and finance. During the Great Depression investors lost faith in stocks partly due to unfair practices and lack of strict rules during and before the 1920’s. During this time stocks were not managed as strict and as ordered as they are now with computers and equipment. They were managed all by hand and on paper. To fix the situation of unfair trading the federal government passed the Securities Exchange Act of 1934 which created the Securities Exchange Commission. This commission regulated stock exchanges and required companies to disclose information that could help the investor evaluate their stock. This also protected investors from having another crash by having stricter rules. From the end of World War II through 1945 to the 1960’s the economy grew stronger as the Great Depression came to an end. People returned to the stock markets and began to invest all over again. Money loans were carried out through the Federal Reserve Bank had a smaller margin. Before, investors would borrow huge sums of money in order to invest. This was one of the other reasons the Great Depression started when investors couldn’t pay back the money they borrowed. Stock exchange grew strong throughout the 1970’s and 80’s and new technology in computers allowed stocks to be managed electronically instead of on paper. Their efficiency allowed trades to be made internationally and computer networks have allowed exchanges to connect to eachother. Such technologies however do have a downfall if any computer hacking is occurred. In 1987 the stock market experienced a brief but major crash. Other countries however have had periods of decline. In Tokyo from 1989 to 1990, the Nikkei index of the company TSE dropped almost 50 percent. They eventually rose back up after 1990. After the 1987 crash, the government established new rules for higher...
