Stock Market Crashes

A stock market crash is a sudden, sharp decline in stock prices across many companies, often causing panic. It usually occurs when investors lose confidence, triggered by economic concerns, geopolitical events, or financial instability. This rapid decline can quickly erode wealth and lead to broader economic downturns. Crashes are different from normal market fluctuations because they happen quickly and involve significant drops in value. While they can be caused by overvalued markets or adverse news, their unpredictable nature makes them a critical risk for investors and economies alike.