Oct 16, 2023

Question of the Day: What major event caused the federal government to start regulating the stock market?

Which historical event caused the federal government to step in regarding the stock market?

Answer: The stock market crash of 1929, which led to the Great Depression.

A newspaper from 1929 with the headline "wall street in panic as stocks crash."


  • What do you know about people’s immediate reaction to the 1929 stock market crash? How do you think you would react if the stock market suddenly crashed?
  • What are some ways that investing today is different from investing in the early 20th century?
  • What are some potential consequences of making immediate financial decisions in reaction to current events?


Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.


Behind the numbers (DFI):

"The great stock market crash of 1929 and the ensuing depression are generally credited with providing the impetus for federal securities legislation. The first major federal legislation enacted in reaction to the stock market crash was the Securities Act of 1933 (33 Act). The 33 Act, administered by the newly created U.S. Securities and Exchange Commission (SEC), provides for the registration of the initial distribution of most securities. During its consideration, some legislators wanted the law to take the form of the New York Fraud Law while others wanted it to provide the type of merit tests which are now found in some blue sky laws."


Check out the Investing unit in NGPF's Semester Course


Check out one of NGPF's most popular investing activities in which students track the long-term performance of stocks they select: 5 Stocks on Your Birthday

About the Author

Ryan Wood

Ryan grew up with and maintains a love for learning. He graduated from the University of Wisconsin-Green Bay with a degree in Business Administration and worked in sports marketing for a number of years. After living in Texas, Colorado, Tennessee, and Minnesota, the call of education eventually brought Ryan back to his home state of Wisconsin where he was a Business and Marketing teacher for three years. In his free time he likes to spend time with his wife and daughter, play basketball, read, and go fishing. Now with NGPF, Ryan is excited to help teachers lead the most important course their students will ever take.

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