Seems like a great question please notify me when the answer comes in
The first main reason was most of the market was based solely on credit, which was stock that was purchased without actual cash, but purchased on credit.
The second factor was the massive pull out by many investors due to a panic that caused the Banks to attempt to purchase these stocks leading to a complete collapse in the market.
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The allies wanted to ensure that Germany wouldn't threaten other countries in Europe.
