A market crash is a sudden and significant decline in the value of financial markets, often measured by stock indices like the Dow Jones Industrial Average or the S&P 500. These crashes can occur due to various factors, including economic downturns, political instability, or unexpected events, leading to panic selling among investors. During a market crash, the rapid drop in prices can result in substantial financial losses for individuals and businesses. This can also trigger a broader economic impact, affecting consumer confidence and spending. Understanding the causes and effects of market crashes is essential for investors and policymakers alike.