What is ‘black Thursday’
Black Thursday-this Thursday, Oct. 24, 1929, when the Industrial index Dow Jones fell by 11 percent at the open in very large volume, precipitating the wall Street crash of 1929 and the subsequent great Depression of the 1930-ies.
More recently, “black Thursday” is also used to refer to Thanksgiving in the US, and more retailers open on Thanksgiving in an effort to get an early start on a frenzied shopping of black Friday.
Breaking down the ‘black Thursday’
Black Thursday and the subsequent market crash in 1929 caused a complete revision of the regulation of the securities market of the United States. These events led to the adoption of the securities Act of 1933 and the law on the trading of the securities of 1934.
Shopping version of “Black Thursday” has led to growing resistance among the employees of retailers, who complain that they are forced to leave your family Thanksgiving dinner early to work on time. Many retailers are opening earlier black Friday, every year in order to counter the growing popularity of online sales.
What happened in black Thursday 1929
Even before the new York stock exchange opened on that fateful Thursday in 1929, investors were already in a panic. Industrial index Dow Jones fell by 4.6% the day before. The Washington post Caption said: “huge Selling wave creates near-panic as shares fall”. When the market opened on black Thursday at 305.85, he immediately fell to 11 percent during intraday trading.
The stock market has fallen almost 20 percent since its record close (at the time) 381.2 on September 3, 1929. Even worse, trading volume was 12.9 million shares – three times the usual volume. Three leading banks at that time were Morgan Bank, chase national Bank and the National city Bank of new York. They bought stocks to restore confidence in the markets. The Dow recovered a bit, closing 2 percent down at 299.47. On Friday, the Dow closed higher, at 301.22. Rada, black Monday, it fell in light trading, 260.64, which led to all-out panic on black Tuesday. At the end of the day, the Dow fell to 230.07, a further 12 per cent loss.
After the accident, the index continued to decline for three years, reduced on 8 July 1932 at 41.22. The Dow lost nearly 90% of its value since its high on September 3, 1929. In fact, he has not reached that high again for 25 years, until 23 November 1954.