Stock Market Crash
The Dow Jones Industrial Average is the average stock price of major industries. When the Dow falls a point, the average price of the stocks falls one dollar. The average is used to indicate the health of the stock market. In March of 1929 the Dow Jones Industrial average was 309. It reached 380 in August. On October 29, 1929, over 16 million shares of stock were sold. The stock market had lost over 30 billion dollars. This mass sale of stock collapsed the stock market and is known as Black Tuesday.
Look at the graph below. What did the market do over the course of the next year? While it is a natural self-regulatory mechanism of capitalism for a recession to occur, the Great Crash of 1929 was a deep dip that had a great effect on the economy.
Stock Market graph