What Was the Fundamental Cause of the Great Crash of 1929

question 50

Essay

What was the fundamental cause of the great crash of 1929 and the Depression that followed? What were its secondary causes? Why did it come so unexpectedly?

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Definitions:

Constant Dividend

A dividend policy in which a firm aims to distribute a fixed or constant amount of money to its shareholders as dividends on a regular basis.

Perpetuity

A financial concept representing a series of equal payments that continue indefinitely.

Outstanding Stock

The shares of a company that have been issued and are currently held by investors, including both public and private shareholders.

Effective Control

The practical authority to direct and manage operations, assets, or investments, often regardless of ownership percentages, ensuring the achievement of strategic objectives.