Crash

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Related to Market Crash: Stock market crash

Crash

Dramatic loss in market value. The last great crash was in 1929. Some refer to October 1987 as a crash but the market return for the entire year of 1987 was positive.

Crash

A sudden, dramatic, and usually sustained drop in securities market prices. It may be followed by a steep economic downturn, like the 1929 Crash that precipitated the Great Depression. In order to prevent crashes from hurting investors too much at once, most exchanges mandate a cutoff point below which trading stops. For example, the by-laws of a stock market may say that if it loses 10% of its value in intraday trading, the exchange officials automatically stop trading. See also: Panic selling.

crash

A protracted major decline in the securities markets.

Crash.

A crash is a sudden, steep drop in stock prices. The downward spiral is intensified as more and more investors, seeing the bottom falling out of the market, try to sell their holdings before these investments lose all their value.

The two great US crashes of the 20th century, in 1929 and 1987, had very different consequences. The first was followed by a period of economic stagnation and severe depression. The second had a much briefer impact. While some investors suffered huge losses in 1987, recovery was well under way within three months.

In the aftermath of each of these crashes, the federal government instituted a number of changes designed to reduce the impact of future crashes.

crash

any breakdown or malfunction of a COMPUTER.
References in periodicals archive ?
The largest global threats are: market crash ($103.33 billion); interstate conflict ($80.00 billion); and tropical windstorm ($62.58 billion).
The researchers set out to investigate a possible relation between a stock market crash and cardiac death in a large population within the United States.
Investors have alleged that one of the biggest culprits behind the market crash of 2008 were chartered accountant firms assigned by the KSE the system audit of the defaulter brokers but which failed to point out the brokers' malpractice of unauthorized share pledging.
Production and business activity began to decline in July, 1929, although the famous stock market crash came in October of that year.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "UK firms shrugged off the latest interest rate rise but it appears they were unable to ignore recent predictions of a housing market crash."
Together, midsize pork producers aim at niche markets: After the hog market crash of 1998-99, four hog producers in Hubbard, Iowa, decided to band together to save their midsize farms.
The idea that realtors could remove the random, speculative aspects of the field through a grounding in science was devastated by the bursting of the Florida bubble in 1926 that preceded the stock market crash, and the sector was further devastated by the drop in housing starts in the early 1930s.
While his boxing career seemed on track, Braddock's financial future was devastated in March 1929 when the Bank of the United States succumbed to the accelerating wave of bank failures that prefigured the Stock Market Crash of the following October.
The stock market crash of 1929 and the subsequent depression led to the creation of the Security Exchange Commission to protect the little guy.
The stock market crash of October 1929 is often seen as the end of the prosperity of the 1920s.
The major thesis of this book is that a stock market crash is not the result of short-term exogenous events, but rather involves a long-term endogenous buildup, with exogenous events acting merely as triggers.
Fung and Hsieh [46] also provide quantitative estimates on the market impact of hedge funds over a comprehensive set of market events, from the October 1987 stock market crash to the Asian Currency crisis of 1997.