how did this affect the prices (the value) of stocks when the panicked investors unloaded their shares? Its about the first day of the crash,Thursday Octber 24, 1929.

Question

anonymous · Answer

The margin call problem, because they were done so frequently are now demonstrated by the financial crisis we see today in banks with "bad" mortgage investments/holdings.
Having one or two go sour can be absorbed within the financial system they are under - when a HUGE series of similar investments go bad, it "shocks" the system which is run by humans who are prone to "panic" can overreact to the crisis.