World War I caused the London Stock Exchange to close for five months in 1914.
The exchange suspended trading on July 31, 1914, as the European financial system came under extreme pressure during the crisis preceding Britain’s entry into the war. The closure was intended to prevent disorderly selling and protect financial stability.
Trading resumed on January 4, 1915, under restrictions. The episode shows that wartime market disruption can arise from a sudden geopolitical shock rather than from a speculative bubble alone.
This closure is sometimes confused with the stock-market crash of 1929, which occurred in the United States fifteen years later. Britain’s 1914 suspension was a response to the outbreak of the First World War and the associated strain on currencies, banks, and securities markets.