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  • overproduction-industry
  • overproduction- farmers
  • speculations
  • i want to invest in stocks asap
  • Staff and equipment are tied up unnecessarily. ...Product defects are hidden until the products leave storage. ... Profitability decreases due to poor inventory management. ...– The legal risks of selling at a loss.
  • buying on margin
  • i need a loan for 8k, i want to invest in stocks
  • after ww1, farmers had more crops that demand. Additionaly, the crop prices declined, wich resulted in them unable to repay their debts.
  • shaky banking
  • sorry sir we gave away our last 10k to the person infront of you.
  • people were speculating about the value of stocks and rushing to buy more and become rich.
  • restriction on international trade
  • other countries dont want to buy our goods
  • borrowing money from a broker in order to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you'd be able to normally. To trade on margin, you need a margin account.
  • Shaky Banking Methods. Banks work by using money from depositors that they then loan to businesses, the money they earn they use to pay interest to these depositors. tariffs. a tax on goods imported, making foreign imported goods more expensive. The Stock Market Crash.
  • encouraged americans to buy american goods, expensive tarrifs.
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