Black Tuesday
Impact
Dow −11.7% in one session. $14B wiped.
What happened
16 million shares changed hands on the NYSE, a record that stood for 39 years. The Dow closed down 11.7 percent. Ticker tapes ran hours behind real prices because the equipment physically could not keep up with volume. Investors were buying and selling blind, reacting to rumors relayed by radio and telephone rather than confirmed quotes.
Context
Ticker tape machines ran hours behind the actual crash. Investors were buying and selling blind — they didn't know the true price until hours after the trade.
Era
02 · Radio & Wire Services
Radio and ticker tape compressed reaction from days to hours. Presidential speeches could move markets the same afternoon. The financial pundit was born.
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