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Stock markets crash for several reasons..... Speculators buy and sell stock for profit, plain and simple. Some people have what is call a stop-loss on their stock positions, enough of these electronic stop losses triggered at one time can and has in the past caused crashes.
Another reasons is media hyped bad news, Where the actual day to day workings of any corporations is not effected at all but the media spreads fear with bad headlines news and creates a selling panic. Many investors feel that selling at a loss is better than losing everything.
There is also the unavailing of a fraud or scams that cause some companies to go belly-up and drag down similar companies that may not be having troubles.
Panic, fraud, scams, bad news and fear are the main causes of most Stock Market crashes.
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∙ 12y ago
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Did the stock market crash happen in the 20th century?
The Stock Market Crash happened in 1929 on Black Tuesday.
What would happen if there was a stock market crash?
A stock market crash is a sudden dramatic decline of stock prices across a significant cross section of a stock market, which results in a significant loss of wealth. Crashes are driven as much by panic as other underlying features.
What can lead to a stock market crash?
Many things can lead to a stock market crash. An example is a natural disaster or an oil spill. When these things happen, many people sell their shares thinking the prices will go down. This causes a crash
What event was the catalyst of the Great Depression?
Stock Market Crash
What event is often considered to be the starting point of the great depression?
(apex) black tuesday
What was a result of the stock market crash farmers problems and the overuse of credit?
The country entered a depression as the result of the stock market crash.
What is the stock market crash seen as the beginning of?
If you are referring to the stock market crash of 1929, that was the beginning of the Great Depression.
What major events happen during Herbert Hoover's term?
The stock market crash (1929) that began the Great Depression.
What were the results of the 1929 stock market crash?
at the end of the stock marketday on thurs. oct,24 the market was at a selling panic attack. the profit flew down and that was the result of the Stock Market crash
What event is considered the start of the Great Depression?
The stock market crash of 1929. novanet - stock prices crashed when millions of shares of stocks were sold
The president during the 1929 crash stock market was?
Herbert Hoover was president of the United States during the stock market crash of 1929.
Do you think the nation would have experienced depression even if the stock market had not crashed?
Yes. The stock market crash did not cause the depression. Instead the economic crisis and the depression caused the stock market crash
