Stock market crash is a sudden and significant decline in stock prices across a major stock market index, such as the Dow Jones Industrial Average or the S&P 500. Crashes can be caused by a variety of factors, including economic recessions, geopolitical events, and financial crises. The term “stock market crash” is often used to describe a decline of 10% or more in a short period of time.
Stock market crashes can have a devastating impact on investors and the economy as a whole. In the United States, the stock market crash of 1929 was a major factor in the Great Depression. More recently, the stock market crash of 2008 was a major factor in the Great Recession.