WORLD HISTORY

Detailed explanation-1: -In October of 1929, the stock market crashed, wiping out billions of dollars of wealth and heralding the Great Depression. Known as Black Thursday, the crash was preceded by a period of phenomenal growth and speculative expansion.

Detailed explanation-2: -First, people who had money invested in the stock market lost much of their savings during the Wall Street Crash of 1929. This caused them to spend less, which created lower demand for goods and services. With businesses seeing a fall in spending, they cut back on output and employed fewer workers.

Detailed explanation-3: -The primary cause of the 1929 stock market crash was excessive leverage. Many individual investors and investment trusts had begun buying stocks on margin. Many only paid 10% of the value of a stock to acquire it under the terms of a margin loan.

Detailed explanation-4: -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.

Detailed explanation-5: -A Stock Market Peak Occurred Before the Crash. The Market-And People-Were Overconfident. People Bought Stocks With Easy Credit. The Government Raised Interest Rates. Panic Made the Situation Worse. There Was No Single Cause for the Turmoil. 13-Apr-2018