Stock Market Crash of 1929 Faqs
Decades before the stock market crash of 1929, a certain quotable notable said this: “October — This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” Who was it?
— Mark Twain. It proved a prescient quote. The stock market crashes of 1929 and 1987 occurred in October.
A popular belief about the aftermath of the 1929 crash holds that scores of distraught Wall Street investors leaped from open windows to their deaths. Is this true?
— No. It’s a popular myth with little evidence to support it. John Kenneth Galbraith actually researched suicide rates from that era. He found no spike after the crash. Although some suicides were surely spawned by the collapse in stock prices — stock crash suicide picture.
Who was president of the United States on October 29, 1929?
— Herbert Hoover. Talk about bad timing! Poor Hoover had just taken the oath of office in March.
The stock market crash of 1929 occurred on?
— All of these (Black Monday, Black Thursday, Black Tuesday). The 1929 crash was a series of shocks that began with Black Thursday, October 24. The market attempted to rally on Friday only to resume its plunge the following week. By the end of Black Tuesday, October 29, only one word could describe the damage and that was “crash.”
In July 2007 the Dow Jones Industrial Average (DOW) closed above 14,000 for the first time. On September 3, 1929, the DOW reached its pre-crash peak. What was it?
— 381. Here are some of the companies that made up the Dow Jones Industrial Average on October 29 1929 and how they ended the day: Chrysler 33 1/2 (-6 1/2), Sears 95 (-16 1/4), General Electric 222 (-28), Woolworth 75 (-5).
When the DOW finally hit bottom it had lost a hefty chunk of its pre-crash value. How much did it lose?
— Nearly 90%. At rock bottom the DOW was down 89% from its pre-crash peak.
What was the headline in Hollywood’s most popular trade paper “Variety”, on October 30, 1929?
— Wall Street Lays an Egg. Leave it to Hollywood to coin such a visually evocative phrase.
On October 29, 1929 what two Dow Stocks closed up on the day?
— National Cash Register 76 +1 and Goodrich 55 +5.
After October 29 the DOW finally hit bottom when?
— Almost three years later in July 1932. The DOW went through a rally phase after October, but for those who had enough money left to buy the dips, it got even worse. The ultimate bottom didn’t come until July 1932.
After the crash of 1929 when did the DOW recover its pre-crash peak?
— November 1954. The DOW took 25 years to recover. When today’s brokers and advisors talk about market performance over the years, they tend to refer to the period AFTER World War II. Who can blame them?
Which of the following was NOT a step taken by the federal government in the wake of the 1929 crash and the Great Depression that followed?
— The Wall Street Windows Act of 1931, which forbade moveable window sashes on all buildings over two stories. Ironically, some of the provisions put in place after the crash have been reversed or abandoned in recent years. For example, Glass-Steagall was repealed in 1999.