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Financial Market Crash

Financial market crash may be nightmare for a potential investor. Repeatedly, the financial markets

across the globe have crashed. There are certain causes that leads to financial market crash. When the stock prices go uphill for a considerable span of time,it can lead towards financial market crash. Economic optimism is the prime reason behind crash of a stock market. A consistent rise in stock prices can lead towards financial market crash. A sudden financial market crash can be the cause of agonies,anxieties and frustration. In history of stock market,it has been found that financial analysts and investment advisory service providers have failed to provide effective speculation regarding market crashes.

Financial market crash may happed due to certain specific economical reasons. As per investorwords.com, crash means "A precipitous drop in market prices or economic conditions.” (http://www.investorwords.com/1190/crash.html) This clarifies that all of a sudden the stock prices go downhill after financial market crash. Financial market crashes have drove away many investors from stock trading.

An abrupt fall in share prices create panic among the investors,being confused,these investors sell almost all of the stocks. Shareholder's psychology changes and this leads towards confusion and chaos in the stock market. Stocks,securities and bonds are sold at a random rate. To avoid the catastrophic effects of financial market crash, it is wise to keep an eye on the financial market trends.

The major causes of stock market crash are as follows:
  • A drastic shift in price-earning ratio
  • An alteration in earnings and changes in earning
  • Changes in dividend amounts and dividends
Thus, a persistent boom in financial market can collapse and result a sudden financial market crash. Beside depending upon the financial advice providers,it is a good idea to keep an eye on the prevailing market trends.

The major financial markets crashes are as follows :

Year & Date

Name

2006

Great Arabian Crash

2005-(till date)

Iranian stock market crisis

October 2002

Stock market downturn of 2002

September 2001

post-9/11 crash

March 2000

Dot-com bubble crash

1998

Russian financial crisis

1997

1997 mini-crash

1992

Asian financial crisis of 1997

October 13, 1989

Black Wednesday

October 19, 1987

Friday the 13th mini-crash

October 29, 1929

Black Tuesday

October 28, 1929

Black Monday

October 24, 1929

Black Thursday

1929

Stock Market Crash of 1929

May 9, 1873

Der Krach

September 24, 1869

Black Friday

May 10, 1837

Panic of 1837

1819

Panic of 1819

Many investors stopped stock trading after being affected due to a financial market crash.

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