Black Tuesday
Definition
Black Tuesday refers to October 29, 1929, when panicked sellers traded nearly 16 million shares on the New York Stock Exchange (four times the normal amount), and the Dow Jones Industrial Average fell -12%. Black Tuesday is often cited as the beginning of the Great Depression.
Analogy
Imagine you're at a concert and suddenly everyone starts rushing for the exit. The panic spreads quickly, causing more people to rush out without knowing what's happening. This is similar to what happened on Black Tuesday; investors started selling their stocks in a panic, which caused a massive stock market crash.
Related terms
Stock Market Crash: A sudden dramatic decline of stock prices across a significant cross-section of a stock market.
Great Depression: A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.
Dow Jones Industrial Average: A price-weighted average of 30 significant stocks traded on the New York Stock Exchange and Nasdaq.
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