A stock market crash is often defined as a sharp dip in share prices of stock listed on the stock exchanges. In parallel with various economics factors, a reason for stock market crashes is also due to panic and investing public loss of confidence. Often, stock market crashes end speculative economic bubbles.
There have been famous stock market crashes that have ended in the loss of billions of dollars and wealth destructionon a massive scale. An increasing number of people are involved in the stock market, especially since the social security and retirement plans are being increasingly privatized and linked to stock and bonds and other elements of the market.
One of the most famous stock market crashes started October 24, 1929, on Black Thursday. The Dow Jones industrial Average lost 50% during this stock market crash. it was the beginning of the Great Depression. Another famous crashtook place on October 19, 1987 Black Monday. The crash began in Hong Kong and quickly spread around the world.
Computer system were upgraded in the stock exchange to handle larger trading volumes in a more accurate and controlled manner. The New York Exchange and the Chicago Mercantile Exchange introduced the concept of a circuit breaker. electronic trading now accounts for the majority of trading in many developed countries.