Knowra Wall Street crash of 1929 Wall Street crash of 1929 A catastrophic collapse in U.S. stock prices in October 1929 that helped trigger the Great Depression. The crash unfolded across several trading days, especially Black Thursday and Black Tuesday.
Buying on margin : Purchasing securities with borrowed money, using the securities as collateral. Leveraged stock purchases magnified losses when prices fell and lenders demanded repayment.
Roaring Twenties : The decade of economic growth, cultural change, and consumer expansion in the United States during the 1920s. Rising prosperity and enthusiasm for stocks helped create the setting for the boom.
Great Depression : A worldwide economic crisis beginning around 1929, marked by severe unemployment, falling production, and financial distress. The crash helped precipitate this prolonged crisis but did not alone cause it.
Black Thursday : October 24, 1929, when heavy selling hit the New York Stock Exchange and leading bankers intervened to support prices. The first dramatic break triggered a brief rally before renewed losses.
Margin call : A broker's demand that an investor add funds or securities when account equity falls below a required level. Falling share prices forced indebted investors to sell or supply cash, adding pressure to markets.
Stock market boom of the 1920s : A sustained rise in U.S. share prices during much of the 1920s, fueled by economic optimism and expanding investment. Rapid price gains encouraged speculation before the October collapse.
Banking crisis of 1930–1933 : A series of U.S. bank failures and panics that culminated in widespread closures during the early 1930s. The crash weakened confidence, while later bank runs and policy failures deepened the downturn.
Black Monday (1929) : October 28, 1929, when U.S. stock prices plunged after selling intensified late the previous week. This severe decline immediately preceded the crash's most notorious trading day.
Panic selling : Rapid, widespread selling driven by fear of further losses rather than orderly valuation decisions. Investors' rush to exit converted declining prices into a self-reinforcing market rout.
Federal Reserve System : The central banking system of the United States, established in 1913. Federal Reserve policy and credit conditions shaped the speculative boom and its late-decade tightening.
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