The stock Market crash that occurred on October 29, 1929, is defined as Black Tuesday. The stock market plunged sharply, with the Dow Jones Industrial Average (DJIA) suffering the downturn's effects in heavy trading volume.
The DJIA fell 12% in one day, making it one of the most significant one-day declines in stock market history. The panic sell-off of more than 16 million shares, which ultimately ended the prosperous twenties and brought the world Economy into the great depression
The stock exchange in the United States collapsed on October 29, 1929, in an event known as Black Tuesday. This triggered a cycle of events that resulted in the Great Depression, a 10-year economic downturn that affected all developed nations.
In the United States of America, the 1920s were a period of prosperity and wealth, with stock markets reaching unparalleled heights. As a result, many investors were led to believe that the economy will continue to grow. Borrowing Capital to purchase more stocks was a common practice among investors. In the late 1920s, the stock market declined as Real Estate prices fell. As stock prices began to fall on October 29, investors hurried to sell their holdings and exit the market, driving prices much lower. This phase resulted in more and more "panic selling" before the stock price reached an all-time low.
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Here is some statistical information that will help you understand the stock market fluctuations during that time frame.
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Not only did Black Tuesday have disastrous consequences for the US economy, but it also had global consequences. After the stock market collapsed, the Great Depression began ending an era of economic expansion and prosperity. In the United States and Europe, Black Tuesday caused a series of disastrous macroeconomic developments, including mass bankruptcies, unemployment, and drastic productivity declines.