October 29, 1929 is the day that terrorized the Wall Street. It is also referred as a Black Tuesday.
The New York Stock Exchange observed an overwhelming crash and sent the country into a financial panic.
Effects of the stock market crash of 1929:
More than a decade since the end of World War I, New technologies such as automobiles, televisions, and telephones grew swiftly.
Families were able to buy goods in part. Majority of the people, the rich and the middle class, invested in stocks and shares.
Investment in the share market with rented funds was done by people.
People were investing in the share market with rented funds. Between the years 1924-1929, the DJIA (Dow Jones Industrial Average – stock market index) raised fourfold.
The first signal of the catastrophic crash was on September 3rd in 1929, when the market peaked. Production of steel went down, many banks failed but nobody seemed to pay attention.
The stock prices began to go down over the course of the next few days. The lower the price went, the faster they tumbled. And on October 29th, the prices of the stock crashed down.
Nobody was aware what hit them, but the concern had set in. The market opened to more dismay the very next day.
Prices of the stocks went down even more. Such was the confusion of stock trading, that more than 13 million shares were traded.
What were the Black Monday and Black Tuesday?
October 28th was considered as the Black Monday. The day opened up to transformed disorder as prices went downhill.
Large amounts of shares were traded. So much so that there wasn’t enough time to record a majority of them. On Tuesday, have took over.
The noise of traders screaming drowned the opening bell of the day. Phone lines were strangled.
People were losing huge amounts of money in a blaze, their life savings wipedaway in instantaneously.
Margins were called. Rumors spread. Fistfights developed. And at 3 P.M, the market was closed.
An astonishing 15 million stocks were traded. Over the weeks, the prices went down further and on November 13th, they bottomed out.
This eventually led to the great gloom. Employees were dismissed, unemployment rose abruptly sending the economy of the country into a tailspin, from which it would never recover until 1954.