RCA Stock Price After the 1929 Stock Crash
RCA Corporation, founded as the Radio Corporation of America, was an electronics company in existence from 1919 to 1986. The “29′ Crash” and Bear Market of 1929-1932 wiped out 95% of RCA’s value.
The first chief executive officer of “RCA” was Owen D. Young — David Sarnoff became its general manager. The documents of incorporation of RCA explicitly required it be mostly owned by Americans. RCA took over the marketing of the radio equipment of G.E. and Westinghouse Westinghouse, and in follow-on agreements, RCA also acquired the radio patents that had been held by Westinghouse and the United Fruit Company.
GE used RCA as its retail arm for radio sales from 1919, when GE began production, until separation in 1930. Westinghouse also marketed home radios through RCA until 1930.
In 1929, RCA purchased the Victor Talking Machine Company, then the world’s largest manufacturer of phonographs (including the famous “Victrola”) and phonograph records. The new subsidiary then became RCA-Victor.
By October 27, 1929 RCA was trading at $58.50 per share when the first wave of selling on “Black Monday“, October 28, 1929 brought the shares down ($18.375) to close at $40.25 per share on the day. By August 11, 1932, RCA was trading at $8.875 and hit a 1932 low of $2.50 per share.
In 1930, the U.S. Department of Justice brought antitrust charges against RCA, General Electric and Westinghouse. As a result, GE and Westinghouse gave up their ownership interests in RCA. RCA was allowed to keep its radio factories, and GE and Westinghouse were allowed to compete in that business after 30 months.
In 1939, RCA demonstrated an all-electronic television system at the New York World’s Fair and developed the USA’s first-ever television test pattern. With the introduction of the NTSC standard, the Federal Communications Commission authorized the start of commercial television transmission on July 1, 1941
RCA is a trademark owned by Technicolor SA which is used on products made by that company as well as Audiovox, ON Corporation and Sony Music Entertainment. RCA stood for Radio Corporation of America, a company which later became RCA Corporation which was taken over by General Electric in 1986 and then split up.
Tags: 1929-1932, 29 Crash, Antitrust Charges, August 11 1932, Bear Market, Black Monday, GE, General Electric, October 27 1929, Owen D Young, Radio Corporation of America, RCA, RCA Corporation, RCA-Victor, Sony Music Entertainment, Split-Up, Technicolor SA, United Fruit Company, US Department of Justice, Victor Talking Machine, Victrola, Westinghouse