Black Tuesday

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Definition of 'Black Tuesday'

Black Tuesday is the name given to October 29, 1929, the day on which the stock market crashed. The crash began on September 4, 1929, and continued through October 29, when it reached its peak. The Dow Jones Industrial Average fell 11% on September 4, 12% on October 21, and 38% on October 29. The crash wiped out millions of dollars in wealth and caused widespread panic.

The crash was caused by a number of factors, including overspeculation in the stock market, a lack of regulation, and a general feeling of optimism about the future. In the years leading up to the crash, investors had been buying stocks on margin, which means they were borrowing money to buy stocks. This led to a sharp increase in the prices of stocks, as investors bid up the prices in order to make a profit.

The crash began when investors began to sell their stocks in large numbers. This caused a panic, as other investors began to sell their stocks in order to avoid losses. The selling pressure caused the prices of stocks to fall rapidly, and the crash was on.

The crash had a devastating impact on the economy. It led to a loss of confidence in the stock market, and it caused a number of businesses to fail. The crash also led to a decline in investment, which slowed down economic growth.

The crash is considered to be one of the most significant events in American history. It had a profound impact on the economy and on the lives of millions of people.

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