Stock Market Crash In The Year 1634
When the first speculative bubbles on Dutch tulips created the first-ever market crash the title of the world’s first stock market deservedly goes to that of 17th-century Amsterdam.
Where an active secondary market in company shares emerged. The two major company were the Dutch East India Company and the Dutch West India company constituted a big portion of the stock market. From which it took years to recover.
Panic of 1907
In 1907 and 1908 stock prices fells by nearly 50% led by the manipulation of copper stocks by the knickerbocker trust company the panic continuities to 1908 and led o the formation of the federal reserve in 1913.
Wall street crash of 1929
The first major US stock market crash was in October 1929 with commodities likes homes and autos selling like hotcakes. speculations ran wild in the stock market the toxic brew of inflated stock prices.
High leverage and borrow money to buy securities would be a formula for more market busts in decades to come. It was the most devastating stock market crash in the history of the united states. It took 12 years for the US to recover from the great depression the second world war was a huge factor in the US long term recovery.
The stock market crash of 1987
Known as black Monday the crash was the greatest single-day loss that wall street had ever suffered in continuous trading up to that point. The least affected country was Austria and the most affected was Hong kong. It took years to recover completely.
One of the consequences of the 1987 crash was the introduction of the circuit tracker or trading curb on the NYSE. In finance, the crash of 1987 also apparently had the ongoing effect of altering implied volatility patterns that arise in pricing financial options.
Equity options traded in American markets did not show a volatility smile before the crash but began showing one afterwards.
The great recession stock market crash of 2008
The 2008 collapse was fueled by the widespread use of most age backed securities backed by the US louting sector the economic crisis caused countries to close their market temporarily.
The stock market crash in 2008 because too many had people had taken on loans they couldn’t afford. Lenders relaxed their strict lending standards to extend credit to people who were less than qualified. it took two years to recover completely.
Corona virus stock market crash 2020
At the end of Feb 2020, the stock market around the world dropped dramatically in four days the FTSE 100 dropped by 13%. Stock index future declined sharply during President Trump’s address and the DJIA declined 10% the following day.
The largest daily decline since black Monday in 1987. Impact of this on global economic growth is going to be huge .while the situation is improving in China, COVID-19 is leading to lockdowns in countries like Italy, South Korea and Iran
Leave a Reply