The stock market is a volatile creature, and it can crash. The worst crashes in history have occurred throughout the 20th century as technology evolved and investors lost faith in the system. This list covers some of the biggest market crashes that have happened over time.
The Great Wall Street Crash of 1929
The Great Wall Street Crash of 1929 was a major stock market crash that occurred on Thursday, October 24, 1929. It began the great depression in the United States and Canada.
The crash began around 3 pm (EST) on Black Thursday and continued throughout the entire week, though prices did not reach their lowest point until Black Monday (October 28). Some stocks were up to 40% lower than they had been before the crash.
Black Monday, 1987
In 1987, the DJIA suffered its largest one-day percentage decline in history. On October 19th of that year, the market fell 22%. Over the next two days, it dropped another 30%. The crash cost investors US$500 billion in total and caused widespread panic across Wall Street and Main Street alike; but what was it?
The answer was a combination of factors: an economic slowdown in Japan led to concerns about America’s economy; many investors were betting on rising interest rates (which would make borrowing money more expensive); some traders were making risky trades based on insider information; and many people simply saw their portfolios shrink as they tried to sell off stocks before they lost even more value than they already had lost during this period of time when stock prices were dropping rapidly.”
The Dot-Com Bubble Burst, 2000
The dot-com bubble burst in 2000, when many internet companies went public with very little revenue and were valued based on their potential rather than profits. Investors were eager to invest …