Stock market crash of , also called the Great Crash , a sharp decline in U. The Great Depression lasted approximately 10 years and affected both industrialized and nonindustrialized countries in many parts of the world. During the mid- to late s, the stock market in the United States underwent rapid expansion. The spectacles of the South Sea Bubble and the Mississippi Bubble had returned.
People sold their Liberty Bonds and mortgaged their homes to pour their cash into the stock market. In the midsummer of some million shares of stock were being carried on margin, pushing the Dow Jones Industrial Average to a peak of points in September.
Any warnings of the precarious foundations of this financial house of cards went unheeded. Prices began to decline in September and early October, but speculation continued, fueled in many cases by individuals who had borrowed money to buy shares—a practice that could be sustained only as long as stock prices continued rising. On October 18 the market went into a free fall, and the wild rush to buy stocks gave way to an equally wild rush to sell. The first day of real panic, October 24, is known as Black Thursday ; on that day a record Still, the Dow average closed down only six points after a number of major banks and investment companies bought up great blocks of stock in a successful effort to stem the panic that day.
Their attempts, however, ultimately failed to shore up the market.
Stock Market Crash of
The panic began again on Black Monday October 28 , with the market closing down On Black Tuesday October 29 more than 16 million shares were traded. The Dow Jones Industrial Average lost another 12 percent and closed at —a drop of points in less than two months. Prime securities tumbled like the issues of bogus gold mines. General Electric fell from on September 3 to on October American Telephone and Telegraph dropped points.
DuPont fell from a summer high of to 80, United States Steel from to , Delaware and Hudson from to , and Radio Corporation of America RCA common stock from to Political and financial leaders at first affected to treat the matter as a mere spasm in the market, vying with one another in reassuring statements.
President Hoover and Treasury Secretary Andrew W. Another 20 years would pass before the Dow average regained enough momentum to surpass the point level.
Many factors likely contributed to the collapse of the stock market. 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 the discount rate was raised from 5 percent to 6 percent , the proliferation of holding companies and investment trusts which tended to create debt , a multitude of large bank loans that could not be liquidated, and an economic recession that had begun earlier in the summer.
We welcome suggested improvements to any of our articles. You can make it easier for us to review and, hopefully, publish your contribution by keeping a few points in mind. You may find it helpful to search within the site to see how similar or related subjects are covered.
Any text you add should be original, not copied from other sources.
At the bottom of the article, feel free to list any sources that support your changes, so that we can fully understand their context.
Internet URLs are the best. Your contribution may be further edited by our staff, and its publication is subject to our final approval. Unfortunately, our editorial approach may not be able to accommodate all contributions. Our editors will review what you've submitted, and if it meets our criteria, we'll add it to the article.
Please note that our editors may make some formatting changes or correct spelling or grammatical errors, and may also contact you if any clarifications are needed. Spotlight Demystified Quizzes Galleries Lists On This Day Biographies. What are you looking for? You have reached Britannica's public website.
For ad-free access to your Britannica School or Library account Click here. Stock market crash of American history. View All Media Date Location United States Topic Great Depression. View of the New York Stock Exchange on an active day in the late s. Share prices peaked in …. A Study of History: Who, What, Where, and When? Learn More in these related articles: The impact of the slump. Demand would fall, goods would pile up, and prices would plummet.
In October , only months after Hoover took office, the stock market crashed, the average value of 50 leading stocks falling by almost half in two months.
Despite occasional rallies, the slide persisted until , when stock averages were barely a fourth of what they had been in Industrial production soon followed the stock market, giving rise to the worst unemployment the country had The end of the republic.
Hugenberg-owned press empire and to its weekly movie newsreels to give himself and his Nazi movement national publicity. The crash had an immediate effect in Germany as American investors, anxious about More about stock market crash of 8 References found in Britannica Articles.
The Stock Market Crash of |
Europe in history of Europe: United States in Great Depression: Stock market crash in United States: External Links Ohio History Central - Stock Market Crash of Public Broadcasting Service - American Experience - The Crash of United States Department of Agriculture - Stock Market Crash of Help us improve this article!
Contact our editors with your feedback. Keep Exploring Britannica History Makers: Take this History True or False Quiz at Encyclopedia Britannica to test your knowledge of famous history makers. Bashar al-Assad, faced an unprecedented challenge to its authority when pro- democracy protests erupted throughout the country. Protesters demanded an end People have swallowed elixirs, inhaled vapors, and applied ointments in the name of healing for millennia.
But only a small number of substances can be said to have fundamentally revolutionized medicine Prelude to war The secession of the Southern states in Everybody knows that big animals can be deadly.
The First Measured Century: Timeline: Events - Stock Market Crash
Lions, for instance, have sharp teeth and claws and are good at chasing down their prey. Shark Week always comes around and reminds us that although shark Take this History True or False Quiz at Encyclopedia Britannica to test your knowledge of the "Scopes monkey trial," the U. Constitution, and other facts about United States history. Having a tough time deciding where to go on vacation?
The war pitted the Central Powers —mainly Germany, The principal belligerents were the Axis powers— Germany, Italy, and Japan —and the Allies— France, Great Britain, the You have successfully emailed this.
Stock market crash of Tips for Editing Leave Edit Mode Submit. Thank You for Your Contribution! There was a problem with your submission. Please try again later. Home Spotlight Demystified Quizzes Galleries Lists On This Day Biographies Login Join. View All Media 3 Images. If you prefer to suggest your own revision of the article, you can go to edit mode requires login.Stock Market Crash of 1929 - Decades TV Network
Thank you for your feedback.