Dictionary Term of Day Articles Subjects Sign Up. You're not signed up. Precipitous and rapid decline that may persist for months or years in the prices of shares traded on a stock exchange , caused by panic selling.

Stock market crashes are triggered typically by loss of investor confidence after an unexpected event , and are exacerbated by fear. They bring normal economic activity to a halt, wipe out the savings of millions of investors, and bring widespread misery in their wake, specially for the weaker and vulnerable sections of the society. A situation in which a stock market experiences a sudden and major decline in the prices of its underlying stocks. A stock market crash could be brought about by the collapse of a speculative bubble , a financial crisis or an economic crisis.

The severity of a stock market crash depends on both the underlying financial events that precipitated the problem and the pressure placed on the stock market by investors reacting to negative news.

Stock market crash - Wikipedia

See also recession , depression. Use 'stock market crash' in a Sentence If there is a stock market crash you will be able to take advantage of it and get some great prices for yourself.

Stock Market Crash

The stock market crash was a wake up call to those who had put all of their eggs in one basket. The potential for a stock market crash was higher than ever and it made me take all my money out of the stock market.

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Going public and offering stock in an initial public offering represents a milestone for most privately owned companies. A large number of reasons exist for a company to decide to go public, such as obtaining financing outside of the banking system How to Invest in a Company. Important Business Valuation Metrics.

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