Stock Market Crash

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DEFINITION of 'Stock Market Crash'

A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, economic crisis or the collapse of a long-term speculative bubble. Well-known U.S. stock market crashes include the market crash of 1929 and Black Monday (1987).

INVESTOPEDIA EXPLAINS 'Stock Market Crash'

Stock market crashes wipe out equity-investment values and are most harmful to those who rely on investment returns for retirement. Although the collapse of equity prices can occur over a day or a year, crashes are often followed by a recession or depression.

RELATED TERMS
  1. Flash Crash

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  2. Stock Market Crash Of 1929

    A severe downturn in equity prices that occurred in October of ...
  3. Stock Market Crash Of 1987

    A rapid and severe downturn in stock prices that occurred in ...
  4. Circuit Breaker

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  5. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) ...
  6. Great Depression

    An economic recession that began on October 29, 1929, following ...
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