Black Tuesday Effects

Powerful Essays
Black Tuesday’s Effect on Past and Present America On Monday, October 28th, 1929 the Dow Jones Industrial Average was down 1,089 points, the biggest intraday point loss in the Dow Jones Industrial Average’s 133-year trading history (“Stock Market Crash of 1929”). This unprecedented drop carried massive economic ramifications. A drop of that scale caused panic among stock brokers and traders. Billions of dollars were lost in the panic on the following day. On Tuesday, October 29th, 1929, 16 million shares of stocks were sold which was four times the normal volume at the time (“Stock Market Crashes”). Black Tuesday changed the course of American history by requiring more stable trading technology, implementing new laws and regulations, and encouraging…show more content…
Many scholars advised that the market would keep rising, this inspired many people to invest in the market upswing (“The Worst Day in Wall Street History”). Many market advisors warned against negative stock market speculation citing that it may cause negative side effects in the market by making cautious investors pull their money out of stocks. (America In Class). Economists showed much promise in the stock market and introduced it to the public very commonly. “Millionaires have been made many times over with the unprecedented rise of certain individual stocks. Of a list of twenty well-known stocks which have increased from 600 to 6,000 percent during the last ten years, twelve famous names appear above the 1,000 percent mark, with one outstanding motor stock heading the list with a 6,493 percent increase. No wonder our nation has gone stock market mad” (America In…show more content…
One of the most drastic results of the stock market crash was the invention of the Securities and Exchange Commission. The Securities and Exchange commission 's job was to set brand new rules and punish any who violated the laws. This led to the market being more structured and disallowed many of the shady practices that were previously used. The Securities and Exchange Commission required that, “companies publicly offering securities for investment dollars must tell the public the truth about their businesses, the securities they are selling, and the risks involved in investing,” and “People who sell and trade securities – brokers, dealers, and exchanges – must treat investors fairly and honestly, putting investors ' interests first” (“Stock Market Crashes”). Previously the stock broker 's main focus was on giving loans and selling stocks regardless of the risk of investing for the investor or the investor 's money’s well-being. Now stock brokers were forced to look into the investor 's best interest as well as their own, which made a safer investing
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