On 29th October 1929, Black Tuesday struck Wall Street during which investors traded over 16 million shares on a single day on the New York Stock Exchange. During this period, Billions of dollars got lost hence resulting to the wiping out thousands of investors (Bing, 2010). After the Black, Tuesday, USA and the rest of the industrialized nations soared downward into the Great Depression (1929-39).It was the deepest and long-lasting economic slump in the history of the Western industrialized countries up to that time. During the 1920s, America’s stock market went through a quick expansion and reached its peak in August 1929, after a period of wild conjecture. By then, production had deteriorated, and unemployment was high, leaving stocks in significant excess of their real value. The causes of the collapse of the market were attributed to low wages, the proliferation of debt, the poor performance of the agricultural sector and an excess of massive bank loans which couldn’t be liquidated (Bing, 2010).
Stock prices started to decline in September and early October 1929. As a result, panic took effect, and on October 24, Black Thursday, a record 12,894,650 shares were traded. Investment firms and leading bankers tried to stabilize the market through purchasing huge blocks of stock, producing a moderate rally on Friday. However, the storm broke afresh, and the market was in a free-fall. Black Monday was followed by Black Tuesday (October 29), whereby stock prices collapsed completely, and 16,410,030 shares were traded on the New York Stock Exchange in one day. Billions of dollars got lost and which wiped out thousands of investors, and stock tickers ran hours behind since the machinery was not able to handle the tremendous volume of trading (Bing, 2010).After October 29, 1929, the prices of the stock had no option but go up. In the following weeks, there was considerable recovery. Overall, however, prices continued to drop as America plunged into the Great Depression, and by 1932, the stocks were worth 20 % of their value in the summer of 1929. The 1929 stock market crash was not the only cause of the Great Depression, but it accelerated the worldwide economic collapse. By 1933, almost half of US banks collapsed, and unemployment was about 15 million people or 30 percent of the workforce.
References
www.youtube.com/watch?v=FXNziew6C9A
Homeworkprospect.com
https://homeworkhelpdomy.wordpress.com/
Stock prices started to decline in September and early October 1929. As a result, panic took effect, and on October 24, Black Thursday, a record 12,894,650 shares were traded. Investment firms and leading bankers tried to stabilize the market through purchasing huge blocks of stock, producing a moderate rally on Friday. However, the storm broke afresh, and the market was in a free-fall. Black Monday was followed by Black Tuesday (October 29), whereby stock prices collapsed completely, and 16,410,030 shares were traded on the New York Stock Exchange in one day. Billions of dollars got lost and which wiped out thousands of investors, and stock tickers ran hours behind since the machinery was not able to handle the tremendous volume of trading (Bing, 2010).After October 29, 1929, the prices of the stock had no option but go up. In the following weeks, there was considerable recovery. Overall, however, prices continued to drop as America plunged into the Great Depression, and by 1932, the stocks were worth 20 % of their value in the summer of 1929. The 1929 stock market crash was not the only cause of the Great Depression, but it accelerated the worldwide economic collapse. By 1933, almost half of US banks collapsed, and unemployment was about 15 million people or 30 percent of the workforce.
References
www.youtube.com/watch?v=FXNziew6C9A
Homeworkprospect.com
https://homeworkhelpdomy.wordpress.com/