Final answer:
During the stock market crash on Black Tuesday, stock prices plummeted, causing individuals and corporations to lose a significant amount of wealth. Banks also failed due to the decline in stock prices, affecting individuals who had taken loans from them to invest in stocks.
Step-by-step explanation:
During the stock market crash on Black Tuesday, which occurred on October 29, 1929, stock prices plummeted, causing stockholders to lose a significant amount of their wealth. It is estimated that over $14 billion was lost in a single day. As a result, many individuals and corporations desperately tried to sell their stocks before prices fell further, resulting in the wiping out of life savings.
The crash also had a devastating impact on banks, as over 90 percent of all banks had invested in the stock market. With the decline in stock prices, many banks failed due to their dwindling cash reserves. This led to individuals who had taken loans from banks to invest in stocks being unable to repay their debts, and subsequently losing their stocks and life savings.
In total, between September and November 1929, the stock market lost over one-half its value, dropping from $64 billion to approximately $30 billion.