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It was more than the total cost of World War I. The crash was the worst in U. The crash began on October 24, This day came to be known as Black Thursday.
The stock market opened at By the end of the day, the Dow was down just 2 percent. On Friday, the positive momentum continued.
The Dow rose 1 percent to A short trading day on Saturday removed that gain. The Dow closed at The Dow fell 12 percent to The Dow was already down 20 percent from its September 3 high. That signaled a bear market. Investors in Clarence Hatry's company lost billions when they discovered he used fraudulent collateral to buy United Steel.
A few days later, Great Britain's Chancellor of the Exchequer, Philip Snowden, described America's stock market as "a perfect orgy of speculation.
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In response, the Dow dropped significantly on both of those days, and again on October Everyone invested, thanks to a financial invention called buying "on margin. They only needed to put down percent.
Dow figures taken from Yahoo Finance DJIA Historical Prices. The crash wiped people out. There were forced to sell businesses and cash in their life savings. That's because brokers called in their loans when the stock market started falling.
People scrambled to find enough money to pay for their margins. That was a 90 percent loss from its record-high close of It took 25 years for the Dow to regain its September 3 high. The subsequent Depression devastated the U.
Search the site GO. US Economy GDP and Growth Recessions Economic Sectors Natural Disasters GDP by Year Economic Theory Supply Demand National Debt Fiscal Policy Monetary Policy Trade Policy Inflation U.
Markets World Economy Economy Stats Hot Topics Glossary. Updated February 20, That was a 27 percent increase over the prior year.
After the crash, banks only had enough to honor ten cents for every dollar. That's because they had used their depositors' savings, without their knowledge, to buy stocks.