Market Crash
A market crash refers to a sudden and significant decline in the value of financial markets, often characterized by a rapid drop in stock prices. This can occur due to various factors, including economic downturns, investor panic, or unexpected news. Market crashes can lead to widespread financial losses and can affect both individual investors and large institutions.
During a market crash, trading volumes may increase as investors rush to sell their assets, further driving down prices. Historical examples of market crashes include the Great Depression in 1929 and the 2008 financial crisis. These events highlight the volatility of markets and the potential for rapid changes in investor sentiment.