wall street crash

Black Thursday

The day when the stock market crashed in 1929, leading to significant financial loss.

Black Tuesday

October 29, 1929, when the stock market crashed again, resulting in the loss of 22% of the value of all American companies in just 36 hours.

Great Depression

A severe worldwide economic depression that lasted throughout the 1930s, triggered in the U.S. by the stock market crash.

Laissez-faire

An economic philosophy of free-market capitalism that opposes government intervention.

Margin buying

The practice of purchasing stocks with borrowed funds, which contributed to the stock market bubble in the 1920s.

Regulation

Government rules and laws designed to control and oversee activities within the banking and stock industry.

Consumer spending

Expenditure by households on goods and services, which declined during economic downturns.

Credit

The ability of consumers and businesses to borrow money, which was widely available prior to the crash.

Over speculation

Investing heavily in stocks with the expectation of quick profit, often ignoring fundamental values.

Federal Reserve

The central banking system of the United States, responsible for regulating financial institutions and monetary policy.

Economic cycle

The natural fluctuation of the economy between periods of expansion and contraction.

Agricultural sector

The part of the economy that focuses on the production of food and goods through farming, which also faced difficulties during the depression.

International financial system

The framework of financial relationships and institutions that enables trade and investment across countries, affected global economies.

Bear market

A market condition characterized by falling prices, which creates an atmosphere of pessimism.

Bankruptcy

A legal status of a person or entity that cannot repay the debts it owes, often leading to financial reorganization or liquidation.

Unemployment

The situation where individuals who are capable of working are unable to find a job, leading to economic and social issues.

Economic disparity

The unequal distribution of wealth and resources within a population, contributing to economic instability.

Federal Reserve System's low interest rates

Monetary policy that kept borrowing costs low, encouraging risky investments in the stock market.

Panic selling

The rapid selling of stocks in response to market downturns, often exacerbating financial losses and market instability.