US stock market crash
Definition
The US stock market crash, also known as the Wall Street Crash of 1929, was a major and sudden global economic disaster that started in the United States and spread worldwide. It marked the beginning of a decade-long Great Depression.
Analogy
Imagine you're playing a game of Jenga. You've built this tall tower (the booming economy), but then someone pulls out one crucial block (over-speculation on stocks) and the whole thing comes crashing down. That's what happened to the U.S. economy during the stock market crash.
Related terms
Speculation: This is when investors buy stocks with borrowed money with an expectation that they will earn profits from it in future.
Great Depression: A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.
Black Tuesday: The fourth and last day of the stock market crash of 1929 in America, which occurred on October 29th.
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