Glossary

Stock market crash

Extreme slump in stock market prices.

A stock market crash is a phase with above-average price decreases mostly due to panic sales by investors.


Stock market crashes often follow speculative bubbles or unexpected adverse events, such as the terrorist attacks on the morning of 11 September 2001.


There is no standardized definition of a stock market crash regarding the extent of the losses. Generally, the stock prices during a crash drop faster and more sudden than one can experience in a bear market, as a result of panic.

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