InvestmentsThe stock market center was in New York, where everyone, rich or poor, saved all their money for stocks. Said stocks were expanding rapidly, with the peak being August 1929, two months before the crash (History.com Editors). $5 billion was lost as a result of that day (Tracy). The amount traded was 12.9 million shares so that the people recover what they had lost money-wise. The recovery process failed as Dow didn’t expect the Stock Market to drop that much, even after buying blocks of stock (Young). Many investors had relied on stocks so much that the event of Black Thursday has completely driven them to bankruptcy (Hayes).
|
Stock Market CrashBlack Thursday was considered one of the most significant events that kicked off the Great Depression era, where on October 24, 1929, the Stock Market had one of the biggest crashes in US History (Amadeo). Dow Jones Industrial Average, Dow, was, and still is, one of the biggest business companies within the Stock Market Industry, initiated by Wall Street Journal editor Charles Dow (Hall). DOW has fallen by 11% on Black Thursday, which was the first drop that led to the plummet, initiating the Great Depression (Amadeo). Black Thursday has also caused the change in the Securities regulations Industry in the US, for example, the Securities Act of 1933 (Amadeo).
|
The Outcome of Black ThursdayAlthough Black Thursday was one of the preeminent factors leading to the Great Depression, many other aspects have also aided the initiation, including overproducing goods in several companies and the sudden drop in share prices (Hayes). Many investors had relied on stocks so much that the event of Black Thursday has entirely driven them to bankruptcy (Hayes). Black Thursday didn’t just lead to the Wall Street Crash and the Great Depression but has also led to many organizations and laws initiated to help the country’s economy and infrastructure (Tracy).
|
There may be a recession in stock prices, but not anything in the nature of a crash.
- Irving Fisher, 5 September 1929
Black Thursday was one of the most important events during the Great Depression, as it was the spark that leads to the turmoil of crisis that eventually ended in war. It began as a stock market crash and ended with the society’s economy plummeting. The following video explains how people of every class couldn’t handle the stocks increasing rapidly and how a single event led everyone into depression.
|
The Stock Market Crash has affected everyone, starting from Black Thursday onwards. Many people had invested in stocks and relied on the major companies, including DOW, to help them invest more. The results of this crash in relation to the time it was at, the Roaring Twenties, really dropped the levels of optimism and economic growth in the population, completely changing everyone’s way of looking at life, which is just the start of the Great Depression.
Bibliography
Amadeo, Kimberly. “Black Thursday 1929, What Happened, and What Caused It.” the balance, 27 January 2021, https://www.thebalance.com/black-thursday-1929-what-happened-and-what-caused-it-3305817. Accessed 13 March 2021.
Hall, Mary. “Who or What Is Dow Jones?” Investopedia, 15 November 2020, https://www.investopedia.com/ask/answers/who-or-what-is-dow-jones/. Accessed 13 March 2021.
Hayes, Adam. “Black Thursday.” Investopedia, 3 February 2021, https://www.investopedia.com/terms/b/blackthursday.asp. Accessed 13 March 2021.
History.com Editors. “Great Depression History.” HISTORY, 29 October 2009, https://www.history.com/topics/great-depression/great-depression-history. Accessed 13 March 2021.
Kramer, Leslie. “What Caused the Stock Market Crash of 1929?” Investopedia, 10 January 2021, https://www.investopedia.com/ask/answers/042115/what-caused-stock-market-crash-1929-preceded-great-depression.asp. Accessed 24 April 2021.
Tracy, Paul. “Black Thursday.” InvestingAnswers, 30 September 2020, https://investinganswers.com/dictionary/b/black-thursday. Accessed 13 March 2021.
Young, Grace. “Stock market crash of 1929.” Britannica, 13 February 2009, https://www.britannica.com/event/stock-market-crash-of-1929. Accessed 13 March 2021.
Hall, Mary. “Who or What Is Dow Jones?” Investopedia, 15 November 2020, https://www.investopedia.com/ask/answers/who-or-what-is-dow-jones/. Accessed 13 March 2021.
Hayes, Adam. “Black Thursday.” Investopedia, 3 February 2021, https://www.investopedia.com/terms/b/blackthursday.asp. Accessed 13 March 2021.
History.com Editors. “Great Depression History.” HISTORY, 29 October 2009, https://www.history.com/topics/great-depression/great-depression-history. Accessed 13 March 2021.
Kramer, Leslie. “What Caused the Stock Market Crash of 1929?” Investopedia, 10 January 2021, https://www.investopedia.com/ask/answers/042115/what-caused-stock-market-crash-1929-preceded-great-depression.asp. Accessed 24 April 2021.
Tracy, Paul. “Black Thursday.” InvestingAnswers, 30 September 2020, https://investinganswers.com/dictionary/b/black-thursday. Accessed 13 March 2021.
Young, Grace. “Stock market crash of 1929.” Britannica, 13 February 2009, https://www.britannica.com/event/stock-market-crash-of-1929. Accessed 13 March 2021.