The Stock Market Crash For Kids

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A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market. The New York Stock Exchange and the Chicago Mercantile Exchange instituted a circuit breaker mechanism, which halts trading on both exchanges for one hour should the Dow fall more than 250 points in a day, and for two hours, should it fall more than 400 points.stock market crash

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Relief and reform measures enacted by the administration of President Franklin D. Roosevelt (1882-1945) helped lessen the worst effects of the Great Depression; however, the U.S. economy would not fully turn around until after 1939, when World War II (1939-45) revitalized American industry.stock market crash

The market is now said to be undervalued and poses a good time for savvy investors or the smart money group to buy stocks so that they can sell them at much higher prices later on. This smart money buying over a period of time causes the stock price to rise.stock market crash

The main cause of this Great Depression that has contributed not only to the downfall of American economy but the whole world as well was mainly due to the rise of radicalism which led to World War II. The exact date was October 29, 1929 where an estimated of about $40 billion dollars from different stockholders were lost.

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