Stock market crash of 1929

Definition

The stock market crash of 1929 was a severe downturn in equity prices that marked the beginning of the Great Depression. It occurred over several days, most notably on October 24 (Black Thursday) and October 29 (Black Tuesday).

5 Must Know Facts For Your Next Test

1. The crash began on October 24, 1929, known as Black Thursday.
2. Over $30 billion was lost within two days of trading.
3. The crash led to widespread bank failures and significant global economic decline.
4. It resulted from a combination of speculative investments, excessive leverage, and declining economic conditions.
5. The aftermath included the introduction of financial reforms like the Securities Act of 1933.

Review Questions

• What were the key dates associated with the stock market crash of 1929?
• How did speculative investments contribute to the stock market crash?
• What major financial reform was introduced after the stock market crash?

Related terms

Great Depression:

A severe worldwide economic depression that took place during the 1930s following the stock market crash.

Securities Act of 1933:

A law enacted to regulate securities transactions and reduce fraudulent activities in the market.

Black Tuesday: The name given to October 29, 1929, when panicked sellers traded nearly 16 million shares on the New York Stock Exchange.