USH Flashcards - Causes of the Great Depression

Black Tuesday: October 29,1929

Stock market crash of 1929

Dow Jones Industrial Average

Stock market index that tracks 20 large, well-established “Blue Chip” US companies.

Bear v. Bull Market

Bear: When stock prices fall by 20% or more.

Bull: When stock prices are rising/expected to rise.

Installment Buying

Purchasing method - paying for a product over time through fixed/regular payments.

Collateral & Foreclosures

Borrowing money when a bank/lender needs a guarantee they will be paid back

Uneven Distribution of Income

When a small percentage of the population receives a large share of total money earned, while the majority earns less.

Overspeculation & Buying on Margin

Overspeculation: taking excessive risks by investing too much money on borrowed funds thinking stock prices will keep rising.

Buying on Margin: Borrowing money to buy more stocks than you could afford with your own cash

Price Supports

Government assistance in maintaining levels of market prices regardless of supply or demand.

Surpluses

Excess of production or supply over demand.

Durable vs. Non-durable Industries

Durable: Produce long-lasting goods

Non-durable: Produce items items consumed immediately