Stock prices had risen more than fourfold from the low in 1921 to the peak reached in 1929. From 1928 - 1929, the Federal Reserve had raised interest rates in hopes of slowing the rapid rise in stock prices. ... As a result, when a variety of minor events led to gradual price declines in October 1929, investors lost confidence and the stock market bubble burst. ... The stock market crash reduced American aggregate demand significantly. ... Major Banks and financial institutions had borrowed and invested heavily in mortgage-backed securities, so when housing prices decline, the value of mort...

• Word Count: 1664
• Approx Pages: 7
• Has Bibliography
• Grade Level: Undergraduate

This rapid expansion of credit resulted in a stock market bubble in the U.S. that hadn't been experienced for decades. Stock prices reached levels that were so grossly overvalued that it made no sense to buy except for the reason that investors hoped to sell later at a higher price. RCA Corporation's stock price leapt from $85 to $420 during 1928, even though it had never paid a single dividend. Many investors became conditioned to think that stock prices would continue going up because they had always gone up before. ... The strength of America's economy came to an end in Octo...

• Word Count: 1262
• Approx Pages: 5
• Grade Level: High School

From 1922, shares on the New York stock exchange rose in value, this rise continued for eight years afterwards. ... Investor's losses were estimated at $26 billion. The stock market had crashed due to over-production, more goods were being produced than people could afford. ... It was due to this decline that triggered the large amount of share selling on the stock market. However there were other underlying reasons as to why the New York Stock Exchange crashed. ...

• Word Count: 1610
• Approx Pages: 6

This effectively passed on the risk to the next investor. ... This along with the fact that an investor could purchase a CDS, credit default swap, an insurance policy against the mortgage defaulting within the CDO, made for a win-win situation with investors. These investors were unaware of the true risk behind each of these CDOs and unfortunately at the same time they were leveraging higher than ever. ... If consumer confidence isn't present, there is a lack in demand, if there is a lack in a demand there is a decrease in investor confidence. Investors aren't willing to hire more em...

• Word Count: 2201
• Approx Pages: 9
• Has Bibliography
• Grade Level: Undergraduate

The Wonderful World Inside of Us "We"re off to see the wizard, the wonderful wizard of Oz." A favorite quote for any child from a favorite movie of every child. It is a dream of every child to be whisked away to a fantasy land, and Oz puts a name to the world in every mind, where adventure looms...

• Word Count: 1492
• Approx Pages: 6
• Grade Level: High School

The electrical industry grew almost as quickly. 2/3 of all American families enjoyed electricity by the end of the decade The corporation continued to be the dominant economic unit in the 1920s Growing corporations now had hundreds of thousands of stockholders, and one individual or family rarely held more than 5% of the stock In the final analysis, the corporate managers were accountable only to other managers From 1920-8, some 8, 000 mergers took place as more and more small firms proved unable to complete effectively with new giants. ... The result was speculation, as those with...

• Word Count: 2034
• Approx Pages: 8

XM's strategic investors, who include GM, Sony, Clear Channel Communications, and DirecTV, provided crucial assistance. ... • XM issued stock warrants that would vest when XM sold its one millionth subscription. ...

• Word Count: 2299
• Approx Pages: 9
• Grade Level: Undergraduate