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The term 'Crash' isn't a scientific word with a standard definition.
When a stock market crashes, this means that a stock index (fts, nasdaq etc) has fell a considerable amount.
How does this happen?In the short term it is a confidence crisis.Loads of people own shares in Towles PLC, which trade at 1 pound.
For some reason or another, either speculative or otherwise, market participants and share holders decide that the company is in terrible shape and the stock is worth noway near 1 pound.
Obviously, the shareholders are going to want to sell their shares and quick.
Lets say I have 100 shares and I want to sell them quickly, I must advertise this on the Stock Market. I call my broker and tell him that I want to sell the shares I have for 95 pence (I am willing to take a small loss because I think the shares will plummet further). He agrees and the offer is placed publically
In order for me to sell the shares, I have to find someone to buy them, but because everyone believes the stock is worthless they are not going to buy for 95 pence (even though it was worth 1 pound).
As a result, I must lower my asking price to 90 pence ..80 pence....70 pence UNTIL I HAVE FOUND SOMEONE WHO IS WILLING TO PAY THE CASH.
Now imagine the same thing is occurring with all the shareholders, in all firms - STOCK MARKET CRASH
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∙ 11y ago
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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.
Did the stock market crash happen in the 20th century?
The Stock Market Crash happened in 1929 on Black Tuesday.
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 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
In 1929 what did the stock market crash into?
The term "stock market crash" means the prices dropped so low and so quickly, they were basically worthless. The crash caused panic among investors. The market didn't physically crash into anything.
Did the stock market crash in 1929?
yes it did
What era followed the stock market crash?
no
