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The Stock Market crashes because of the existing economic events coupled with crowd behavior and psychology in which people prefers to sell. (Wikipedia) Generally the causes why crashes occurs in stock markets are:

1. Prolonged period of rising of stock prices

2. Excessive economic optimism

3. P/E ratios exceeded long-term averages

4. extensive use of margin debt and leverage by the market participants

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11y ago
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12y ago

Over speculation

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Q: Reasons was most likely the single cause of the stock market crash?
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