The term designates October 29, 1929, the day the New York Stock Exchange experienced a catastrophic plunge in stock prices. This event is widely considered a pivotal moment initiating the Great Depression in the United States. The massive sell-off overwhelmed the market’s ability to absorb the shares, leading to devastating financial losses for investors across all sectors.
The significance of this event extends beyond its immediate economic impact. It exposed underlying weaknesses in the American economy of the 1920s, including over-speculation, unregulated financial practices, and an unstable banking system. Its consequences were far-reaching, triggering widespread unemployment, bank failures, and a global economic crisis that lasted for a decade.
