6th Grade Reading Quiz
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READING INFORMATIONAL TEXT
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During the 1920s, many Americans invested heavily in the stock market, often borrowing money to buy shares they hoped would keep rising in value forever. Prices climbed higher and higher, detached from the actual worth of the companies involved. Economists now describe this period as an economic bubble, a situation where prices are inflated far beyond what is realistic. In October 1929, confidence collapsed almost overnight. When the bubble burst, stock values plummeted within days, wiping out fortunes and triggering a nationwide financial crisis. Banks failed, factories closed, and millions lost their jobs. The sudden, dramatic nature of the collapse caught nearly everyone off guard, since so many believed the good times would continue indefinitely.
As used in the passage, what does the phrase "when the bubble burst" mean?
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