On October 29, 1929, the United States stock market crashed in an event known as Black Tuesday. This began a chain of events that led to the Great Depression, a 10-year economic slump that affected all industrialized countries in the world.

The 1920s had been a time of wealth and excess in the United States of America, and stock prices had risen to unprecedented levels. This encouraged many people to speculate that the market would continue to rise. Investors borrowed money to buy more stocks.

As real estate values declined during the late 1920s, the stock market also weakened. When stock prices started to slide on October 29, people rushed to sell their stock and get out of the market, which drove prices down even further. This cycle led to more and more “panic selling,” until the stock market fell to its lowest point in history.

affect
Verb

to produce a change.

decline
Verb

to reduce or go down in number.

economics
Noun

study of monetary systems, or the creation, buying, and selling of goods and services.

encourage
Verb

to inspire or support a person or idea.

excess
Noun

extra or surplus.

Great Depression
Noun

(1929-1941) period of very low economic activity in the U.S. and throughout the world.

industrialize
Verb

to develop large-scale factories and plants (industry).

investor
Noun

a person or organization that gives money in order to gain a future advantage.

panic
Verb

to suddenly feel very nervous, afraid, or overwhelmed.

speculate
Verb

to consider or guess.

Noun

place where partial ownership of companies, goods, and services (stocks, bonds, and securities) are bought and sold.

unprecedented
Adjective

never before known or experienced.

wealth
Noun

amount of money or other valuable materials.

More Dates in History

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