Stock market crash

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A stock market crash is a sudden and dramatic decline of stock prices. Crashes often result in a major loss of paper wealth.

Crashes are associated with panic selling and underlying economic factors.

Crashes usually come after speculation and economic bubbles.

Crashes are often though not always associated with bear markets. For example, the stock market crash of 1987 didn't lead to a bear market.[1]

References[change | change source]

  1. "Stock Market Crash 1987". Federal Reserve History. Retrieved April 17, 2021.