Most people mark the beginning of the Great Depression
with a day known as Black Tuesday.
What happened on Black Tuesday?
Why is that day so important?
A corporation is a business which individuals buy stock in.
The more stock one owns,
the larger share of the corporation that person has.
These stocks are bought, sold, and traded on the stock exchange.
The American Stock Exchange
is located on Wall Street and New York City.
The success and failure of these corporations
is gauged by The Dow Jones Industrial Average.
The Dow Jones is an index
which shows how large corporations are performing
on the stock exchange.
If the Dow Jones average goes up,
this means that corporations are prosperous,
and their shareholders are making money.
If the Dow Jones average goes down, this means
that many of the corporations are facing economic hardships.
Throughout the 1920s, the Dow Jones Industrial Average had steadily gone up,
along with the unprecedented economic growth in the United States.
In fact, it had continued to rise for nine years in a row.
然而 在1929年 股票市场出现大幅波动
However,in 1929,the stock market saw major fluctuations.
Throughout the year,
there were ups and downs
as investors bought and sold in sporadic fashion.
During the summer months, some economic analysts predicted a major slump,
but most did not heed this warning.
Thursday October 24, 1929 was the first day
that saw a dramatic shift.
When the stock exchange on Wall Street opened,
there was heavy trading, with many choosing
to sell their stocks and get out of the market.
this caused an 11% drop in the value of the market.
A group of leading bankers even held a meeting
to see if they might be able to find a solution
to the panic that had ensued on that day.
某天 10月28日 见证了更多的情况
One day.October 28, saw even more activity.
The Dow Jones Industrial Average spiraled further downward.
This meant that many investors desire to sell their stock
but no one wanted to purchase those stocks
for the prices that they were been sold at.
The next day, October 29, 1929,
was the day that will forever be remembered as Black Tuesday.
That day,the Dow Jones Industrial Average fell 30 points
losing 12% of its value,
More than 16 million shares were traded.
A record that would stand for more than fourty years.
With so many investors looking to dump their stocks,
and thousands of people lost their personal fortunes.
The stock market have lost more than $30 billion dollars in value
over the course of two days,
and the event became known as the Stock Market Crash.
The stock market continued to fall even lower
over the next two weeks before finally stabilizing in mid-November.
June of 1930 saw another slump in the market
and yet another downward spiral occurred in April of 1931.
Investors had lost faith in the American economy.
The decline in stock prices
caused bankruptcy and business closures for many corporations.
Expansion and innovation became more difficult
as no one wanted to invest their financial capital and take risks.
As a result, it would take more than a decade for the US economy to recover.
This is why Black Tuesday is considered
the event that started the Great Depression.