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    On October 24, 1929, known as Black Thursday, the New York Stock Exchange saw a huge selloff that caused panic in the market. Richard Whitney, the vice president of the NYSE, intervened to stabilize prices by placing purchase bids above the current market price for blue chip stocks with support from leading bankers. This bid-ask strategy succeeded in controlling the panic and allowing the major indexes to recover by the end of the day, though the Dow Jones still closed down 6.38%.

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    On October 24, 1929, known as Black Thursday, the New York Stock Exchange saw a huge selloff that caused panic in the market. Richard Whitney, the vice president of the NYSE, intervened to stabilize prices by placing purchase bids above the current market price for blue chip stocks with support from leading bankers. This bid-ask strategy succeeded in controlling the panic and allowing the major indexes to recover by the end of the day, though the Dow Jones still closed down 6.38%.

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    5 views2 pages

    CLB 1

    Uploaded by

    Ganesh
    On October 24, 1929, known as Black Thursday, the New York Stock Exchange saw a huge selloff that caused panic in the market. Richard Whitney, the vice president of the NYSE, intervened to stabilize prices by placing purchase bids above the current market price for blue chip stocks with support from leading bankers. This bid-ask strategy succeeded in controlling the panic and allowing the major indexes to recover by the end of the day, though the Dow Jones still closed down 6.38%.

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    © All Rights Reserved
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    Question - Circumstances led to Richard Whitney’s gamble on October 24th , 1929, failing,

    causing the New York Stock Exchange to collapse

    The event happened on October 24th , 1929 is also known as "Black Thursday". Richard
    Whitney was the vice president of the exchange. Because of the huge selloff was observed
    the several investment banker choose exchange’s vice president to resolve the panic in the
    market.
    In order to control the panic the bid-ask strategy was applied by Richard Whitney as leading
    bankers were in support of the Whitney. On the day the market tanks by around 11% of it’s
    value at the opening session only. He placed the purchase bid for "Blue Chip" stocks above
    the current market price and the solution works. Majority of the indexes recovered by end
    of the day. The Dow-Jones close down by only 6.38%.

    1
    References -

    • Wall Street Crash In 1929: facts, analysis, lessons.


    https://option.fm/wall-street-crash-in-1929-facts-analysis-lessons/

    • Meet Richard Whitney, Wall Street’s 1930s Version of Bernie Madoff.


    https://historynewsnetwork.org/article/151925

    • UNDERSTANDING THE HISTORY OF STOCK MARKETS.


    https://www.academia.edu/37027254/UNDERSTANDING THE HISTORY OF STOCK
    MARKETS?auto=download

    • 8 Stock Market Crash Great Depression.


    http://sites.austincc.edu/caddis/stock-market-crash-great-depression/

    • https://www.bartleby.com/essay/The-Stock-Crash-PKF9FXZVC

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