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.