The stock market crash of 1929 was a devastating event that wiped out many investors and caused a global economic collapse. It was caused by a combination of factors, including overspeculation in the 1920s, the lack of government oversight, and the failure of US presidents to address the issue. Banks issued margin adjustments due to the huge number of shares purchased on margin by the general public and the lack of cash on the margin, which caused entire portfolios to be liquidated. This led to a massive drop in stock prices, with the Dow Jones Industrial Average (DJIA) falling 89% from its peak in September 1929. People borrowed money to invest in the stock market, which meant that stocks were bought with loans rather than cash.
This weakened Americans' confidence in their own companies and caused creditors to demand repayment of loans. The Great Depression was accelerated by the stock market crash, but it was not the only cause.
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