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Stock market crash - Definition and Overview |
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A stock market crash is a sudden dramatic loss of value of shares of stock in corporations. Crashes often follow speculative stock market bubbles such as the dot-com boom.
The most famous crash in 1929, (known as Black Thursday) when the Dow Jones Industrial Average dropped 50%, preceded the Great Depression. The succeeding years saw the Dow Jones drop a total of over 85%.
There was also a crash or "adjustment" on Monday October 19, 1987, known in financial circles as Black Monday, when the Dow Jones lost 22% of its value in one day, bringing to an end a five-year bull run. The FTSE lost 10.8% on that Monday and a further 12.2% the following day. The pattern was repeated across the world.
The stock market downturn of 2002 was part of a larger bear market that took the NASDAQ 75% from its highs and broader indices down 30%.
Stock market crashes are driven by panic as much as by underlying economic factors. So long as the prospect of further daily drops in the value of stocks persists, a bear market, equity investors can be expected to persist.
See also
External links
- Stock Market Crash! (http://www.stock-market-crash.net) — Learn about history's worst stock market crashes.
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Example Usage of market |
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planstoprosper: #followfriday: @LDoren Twitter account for @YouTube channel How the World Works, a no-nonsense free-market/conservative news wrap-up. #ff |
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dgdreamin: Fun trip to the lil country market 2day. Everything always looks better there: sweet potatoes, asst greens, apples, hoop cheese, pears, etc |
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DinkyShop: @profblmkelley This is why we have to produce our own content, distrib on the Net.. There's a market, imo. @Geniusbastard -->OWN @Oprah |
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