Stock Market Crash

A stock market crash is a sudden and significant decline in stock prices across the market, often leading to widespread financial losses. It occurs when investors rapidly sell off stocks due to fears of economic downturns, overvaluation, or unexpected negative news. This panic-selling causes prices to plummet, eroding investor wealth and potentially triggering broader economic issues. Crashes can happen quickly and are typically driven by a combination of economic factors, investor psychology, and market mechanics. While sometimes a crash is a correction after overinflated markets, it can also signal deeper financial instability.