The primary cause of the 1929 stock market crash was a combination of speculative investments, overproduction, and weaknesses in the banking sector. During the 1920s, many people purchased stocks on margin, leading to inflated stock prices detached from actual company performance. When the market began to decline, panic selling ensued, resulting in a loss of confidence and rapid downturns. This crash precipitated the Great Depression, drastically impacting the U.S. economy and contributing to economic turmoil worldwide. The resulting loss of wealth and employment highlighted significant flaws in economic practices and regulations of the time, leading to reforms in the following years.