Answer:
The panic sales in October 1929, also known as the Stock Market Crash of 1929, were caused by a combination of factors that had built up over time. In the years leading up to the crash, there was an economic boom in the United States, and many people invested heavily in the stock market. However, much of this investment was based on speculation rather than sound economic fundamentals, and there was a significant amount of fraud and manipulation taking place.
As the market became increasingly overvalued, investors began to take on large amounts of debt to finance their investments. At the same time, there were signs that the economy was slowing down, and many companies began to report lower profits. This caused some investors to start selling their stocks, which in turn led to a decline in prices.
On October 24, 1929, also known as Black Thursday, a record 12.9 million shares were traded, and the market fell by 11%. This led to widespread panic among investors, who began selling their stocks in large numbers. This led to a further decline in prices, and by October 29, the market had lost 40% of its value.
The panic sales were caused by a combination of factors, including overvaluation of stocks, excessive speculation, fraudulent practices, and economic slowdown. The sudden and rapid decline in prices led to a loss of confidence among investors, which in turn led to panic selling and a further decline in prices. The Stock Market Crash of 1929 is widely regarded as the start of the Great Depression, which had a profound impact on the global economy for many years.
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