What does the term Black Tuesday mean?
Black Tuesday refers to a precipitous drop in the value of the Dow Jones Industrial Average (DJIA) on Oct 29, 1929. Black Tuesday marked the beginning of the Great Depression, which lasted until the beginning of World War II.
What caused the Wall Street crash of 1929?
The 1929 stock market crash was a result of an unsustainable boom in share prices in the preceding years. The boom in share prices was caused by the irrational exuberance of investors, buying shares on the margin, and over-confidence in the sustainability of economic growth.
What happened on Black Thursday?
Black Thursday is the name given to an infamous day in stock market history: Thursday, Oct. 24, 1929, when the market opened 11% lower than the previous day’s close, and panicked selling ensued throughout a day of heavy trading.
What happened during the Great Depression?
It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.
Who was responsible for the stock market crash of 1929?
Among the more prominent causes were the period of rampant speculation (those who had bought stocks on margin not only lost the value of their investment, they also owed money to the entities that had granted the loans for the stock purchases), tightening of credit by the Federal Reserve (in August 1929 the discount …
What happens to stock during deflation?
During times of deflation, goods and assets decrease in value, meaning that cash and other liquid assets become more valuable. So the very nature of deflation discourages investment in the stock market, and decreased demand for stocks can have a negative effect on the value of stocks.
What was the worst thing about the Great Depression?
The worst years of the Great Depression were 1932 and 1933. Around 300,000 companies went out of business. Hundreds of thousands of families could not pay their mortgages and were evicted from their homes. Millions of people migrated away from the Dust Bowl region in the Midwest.