The nineteen twenties were a time in this countries history of unbelievable prosperity. The stock market was going through the roof, stocks doubling in price, prosperity was everywhere, and America seemed to have the formula for exceptional success. Billions of dollars were invested in the stock market as people began to squander money on the rising stock prices and buying on margin. . The stock market was controlled by professionals that worked for large firms who had good financial backing which made it easier to use the market advantageously. Small investors were never shut out of Wall Street but the professionals paid for stock tips and also rigged the market so that certain stocks would rise and fall. This gave small investors a much harder time in making money through the stock market. As the market began to grow more small investors entered the game and were really just gambling their money. Those who didn't put their money in the stock market were judged insane or incompetent. However, the same formula that generated all of the profit would eventually be the cause of Black Thursday. Thursday, October 24, 1929 has the unpleasant honor of being called Black Thursday because it was on this day that the New York Stock Exchange crashed, indicating the end of the "Roaring Twenties" and the beginning of the Great Depression. On Black Thursday, the stock market nearly totally collapsed as millions of people began withdrawing money in fear of losing it all. The following Monday the stocks dropped once again and on Tuesday a record 16,410,030 shares were sold. Not only did the stock market prices drop drastically but the business world was brought down with it. Inflation also rose because of the crash. The crash that occurred on October of 1929 caused Americans to lose Thirty billion dollars, and the American dollar value was 90% less than it was prior to October of 1929. Investment during the 1920s was based on margin buying. This mea...
