Stock Market Crashes (1929): The enthusiasm and optimism of the 1920s in the United States led many people to invest their savings into the stock market. As the bull market (when stock prices are rising) continued throughout 1927 and 1928, even more everyday people were enticed to invest.
By early 1929, interest in the stock market reached a fevered pitch. The upward swing in the summer of 1929 convinced many that the high stock prices were going to remain high.
Then panic struck on Black Thursday, October 24, 1929. Prices began to plummet. Although there was rally in the afternoon, investors had become frightened.
On October 29, 1929, the stock market crashed. Massive number of people were trying to sell their stocks and nearly no one was buying. The stock market didn't bottom out until 1932.
See full article: Stock Market Crash of 1929
