A market collapse refers to a sudden and significant decline in the value of financial markets, often leading to widespread panic among investors. This can occur due to various factors, including economic downturns, political instability, or unexpected events. When a market collapses, stock prices plummet, and many investors may experience substantial losses. During a market collapse, trading volumes often increase as investors rush to sell their assets, further driving down prices. Historical examples include the Great Depression of the 1930s and the 2008 financial crisis, both of which had lasting impacts on economies worldwide.