The collapse of the New York Stock Exchange happened more than once. Each crash left its mark on the financial system. In total, five stock falls can be distinguished, which occurred in 1873, 1907, 1929, 1987 and 1994.
1873 year
A person who understands the financial system understands how unstable it is. This is clearly illustrated by the example of the New York Stock Exchange, which has suffered a serious collapse more than once. The first one took place in 1873. Panic among traders is believed to be the cause of this financial meltdown. This collapse was called "Black Friday" and was the beginning of the "Long Depression" that occurred between 1873 and 1896.
1907 year
In 1907, the New York Stock Exchange Index plummeted by nearly 50%. This happened against the backdrop of the poor economic condition of the country, which was in recession. Bank depositors withdrew funds en masse. Eventually, many banks and businesses went bankrupt. A significant role in this belongs to the authoritative financier John Morgan. But it's worth noting that not all traders went bankrupt. Jesse Livermore, a well-known speculator, then made the legendary deal, earning $ 3 million. By the way, the events of this year served as the basis for the creation of the Federal Reserve System later.
1929 year
In 1929, there was a very strong collapse, as the market became cheaper in value by $ 30 billion in just a week. This is a huge amount! Investors tried to get rid of stocks before they lost value. As a result, 12.9% of all securities circulating on the market were sold during the day. This have not happened before. The Dow Jones Index dropped 11%. This situation happened on Thursday, October 24, so it was called "Black Thursday". But that was only the beginning. A few days later, on October 28 and 29, the stock exchange shocked again. The market dropped 40% over the week. The US government spent less money during World War I. This is how the world economic crisis of 1929-1939 went down in history.
1987 year
In 1987, the Dow Jones broke the record for falling because more than 20% of the industrial index was lost in a day. Markets in many countries have suffered huge losses. There were no obvious reasons for the events that occurred. There were a lot of orders, so computers couldn't handle them. The authorities solved this problem with limited access to trading.
1994 year
In one day, October 11, on the stock exchange the ruble fell by 845 points against the dollar. Although it is worth noting that the situation stabilized in a few days and the exchange rate became almost the same. Despite this, the collapse of the exchange, although very short-lived, left its mark and went down in financial history.