Stacy Watts, age 10, of Noblesville, Ind., for her question:

WHAT CAUSED THE CRASH OF '29?

A worldwide business slump during the early 1930s was known as the Great Depression. Thousands of stockholders lost large amounts of money in what has come to be known as the Stock Market Crash of 1929.

From 1925 until 1929, the average price of common stocks on the New York Stock Exchange more than doubled. The fast rising values encouraged many people to speculate in the market. They purchased expensive stocks hoping to make large profits following future price increases.

The value of stocks dropped rapidly on Oct. 24, 1929 a day that came to be known as Black Thursday. Prices stayed steady on Friday. But then on Monday the prices fell again. On Tuesday, Oct. 29, stockholders panicked and sold a record 16,410,030 shares. Many banks and businesses closed. The depression was on as stock values fell almost steadily for the next three years.