Which stock exchange crash in Vienna helped trigger the worldwide financial crisis known as the Panic of 1873?

The Vienna Stock Exchange crash helped trigger the worldwide financial crisis known as the Panic of 1873.

On May 9, 1873, speculation in Austrian companies and real estate collapsed on the Vienna Stock Exchange. The day became known as Gründerkrach, or founders’ crash, because it followed a period of aggressive company formation and investment.

The shock spread through European financial markets and soon reached the United States. In September 1873, the failure of the investment bank Jay Cooke & Company helped set off a major American panic, followed by a long depression.

The Panic of 1873 is sometimes described as the first truly international financial crisis of the industrial age. It exposed the risks of railway speculation, easy credit, and rapidly expanding markets. The resulting downturn lasted for years in several countries.