The stock market crash of 1929 was a pivotal event that triggered the Great Depression, one of the most significant economic downturns in history. It occurred on October 29, 1929, also known as Black Tuesday.

On that day, the stock market experienced a devastating crash, causing stock prices to plummet and wiping out billions of dollars in wealth. The crash was a result of a speculative fever that had taken hold in the market, fueled by excessive buying and selling of stocks on margin, which is borrowing money to invest in stocks.

For example, during the 1920s, many Americans were heavily investing in the stock market, often using borrowed money to do so. This led to an artificial inflation of stock prices, creating an unsustainable bubble. As the bubble began to burst, investors panicked, resulting in a massive sell-off of stocks.

Following the stock market crash, the immediate aftermath was characterized by widespread financial ruin. Countless investors lost their life savings, and many businesses were forced to close their doors. Unemployment rates soared as companies downsized or went bankrupt.