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

    The quick drop and recovery in securities prices that occurred ...
  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

    Refers to any of the measures used by stock exchanges during ...
  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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