Question

the market crashes: black thursday quiz
american history academic (part b) pva (acc.ed) (sp26) / the great de..

1. why was black thursday so devastating?

the stock market lost nearly one quarter of its entire value on that one day.
manufacturing companies were forced to stop issuing stock, so they lost value.
it forced companies to reveal their real values, as opposed to their paper values.
no one on wall street understood that the market was crashing, so they just continued to sell.

Explanation:

To determine why Black Thursday was devastating, we analyze each option:

• Option 1: Black Thursday (October 24, 1929) saw the stock market lose nearly a quarter of its value in one day, which aligns with historical facts about the market crash.
• Option 2: Manufacturing companies weren't forced to stop issuing stock as a primary reason for the devastation of Black Thursday.
• Option 3: Forcing companies to reveal real values wasn't the cause of its devastation; the crash was about the market's sudden loss of value.
• Option 4: People on Wall Street were aware of the crash, and panic selling occurred, so this is incorrect.

Answer:

A. The stock market lost nearly one quarter of its entire value on that one day.