What Is The Infamous Stock Market Crash Of 1929?

October 29, 1929, is the day that terrorized Wall Street. It is also referred to as Black Tuesday.

The New York Stock Exchange observed an overwhelming crash and sent the country into a financial panic.

Effects Of The Stock Market Crash Of 1929:

More than a decade since World War I, New technologies such as automobiles, televisions, and telephones have grown swiftly. Families were able to buy goods in part. The majority of the people, the rich and the middle class, invest in stocks and shares. 

People invested in the share market with rented funds.

People were investing in the share market with rented funds. Between 1924-and 1929, the DJIA (Dow Jones Industrial Average – stock market index) raised fourfold.

The first signal of the catastrophic crash was on September 3, 1929, when the market peaked. Production of steel went down, and many banks failed, but nobody seemed to pay attention.

The stock prices began to go down over the next few days. The lower the price went, the faster they tumbled. And on October 29, the prices of the stock crashed down.

Nobody knew what hit them, but the concern had set in. The market opened to more dismay the very next day. Prices of the stocks went down even more. The confusion in stock trading was that more than 13 million shares were traded.

What Were The Black Monday And Black Tuesday?

• October 28 was considered Black Monday. The day opened up to transformed disorder as prices went downhill. Large amounts of shares were traded. So much so that there wasn't enough time to record a majority of them. On Tuesday, it took over.

• The noise of traders screaming drowned the opening bell of the day. Phone lines were strangled.

• People were losing vast amounts of money in a blaze, and their life savings were wiped away instantaneously.

• Margins were called. Rumours spread. Fistfights developed. And at 3 P.M, the market was closed.

• An astonishing 15 million stocks were traded. Over the weeks, the prices went down further, and on November 13, they bottomed out.

• This eventually led to the great gloom. Employees were dismissed, and unemployment rose abruptly, sending the country's economy into a tailspin, from which it would never recover until 1954.