Black Thursday Definition
Black Thursday or the Wall Street Crash refers to October 24, 1929, the day when the New York Stock Exchange crashed, leading eventually to the Great Depression.
The crash followed a speculative boom which had taken hold in the late 1920s, which had led millions of Americans to invest heavily in the stock market.
This investment drove share prices up to artificially high levels, the rising share prices encouraged more people to invest, as they hoped the shares would rise further, thus fueling further rises, and creating an economic bubble. The banks lent heavily to fund this share buying spree.
On October 24, 1929, the bubble finally burst and panic selling set in. Thirteen million shares were sold in the space of one day, as people desperately tried to dispose of their shares before they became worthless.
Over the following few days another thirty million shares were sold, and share prices collapsed, ruining millions of investors.