The Stock Market Crashes in 1929 — Reading Comprehension

The Stock Market Crash of 1929 was a turning point in United States history. In the 1920s, many people bought stocks to try to make money. A stock is a small part of a company. People believed the market would always go up. They borrowed money to buy more stocks. This is called buying on credit.

On October 24, 1929, known as "Black Thursday," prices started to fall fast. People rushed to sell their stocks. The panic spread. Five days later, on October 29, called "Black Tuesday," the market crashed. Stock prices fell even lower. Many people lost all their money.

Banks had lent money to many people to buy stocks. When the market crashed, people could not pay the banks back. Some banks closed. People lost their savings. This led to the Great Depression, a time when many lost jobs and homes.

President Herbert Hoover tried to help. He said, "The fundamental business of the country... is on a sound and prosperous basis." Still, the problems grew. Later, President Franklin D. Roosevelt made new laws to help people and fix the economy.

The crash taught the country important lessons. People worked together to rebuild and create new rules to make the stock market safer.

Economy means all the jobs, businesses, and money in a country. When the economy is strong, people can find jobs and earn money. When it is weak, it is hard to find work.

Interesting Fact: The Stock Market Crash did not cause the Great Depression alone, but it made the problems much worse for millions of Americans.

What year did the stock market crash?

What is buying on credit?

Who was president during the crash?

Why did banks close after the crash?

What was the Great Depression?

What did people learn after the crash?

The crash made problems worse. True or false?

What is the economy?