Question

What happened to the stock market in October 1929?

Answer 1

The stock market crash of 1929, also known as Black Tuesday, was a major event in American history that led to the Great Depression. It was caused by factors such as over-speculation, excessive borrowing, and insufficient regulation of the banking industry.

Step-by-step explanation:

The stock market crash of 1929, also known as Black Tuesday, was a major event in American history. In October of that year, the stock market experienced a rapid decline in prices, causing panic and financial losses for investors. The crash was a result of various factors, including over-speculation, excessive borrowing, and insufficient regulation of the banking industry.

One of the key factors was the practice of buying stocks on margin, where investors would borrow money to purchase stocks. When stock prices fell, investors were unable to repay their loans, leading to a cascade of bank failures and a loss of confidence in the financial system.

The impact of the stock market crash of 1929 was significant, leading to the Great Depression, which lasted for about a decade. It resulted in widespread unemployment, business failures, and severe economic hardship for many Americans.

Answer 2

The epic boom ended in a cataclysmic bust. On Black Monday, October 28, 1929, the Dow declined nearly 13 percent. On the following day, Black Tuesday, the market dropped nearly 12 percent. By mid-November, the Dow had lost almost half of its value.