The overall drop in stock prices that began in 1929 and continued through 1932 was due to:

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The panicked, massive sale of stocks caused by investor fear and uncertainty caused stock prices to plummet, leading to the overall drop in stock prices that began in 1929 and continued through 1932. This event is widely known as the Stock Market Crash of 1929. While the decline in profitability of many firms may have contributed to the stock market decline, it was primarily the panicked selling of stocks that caused the plummeting prices. Increased government regulation and growing tension in Europe were also factors that affected the stock market, but they were not the primary causes of the stock market crash.

The Overall Drop in Stock Prices That Began in 1929