A market crash is a sudden and significant drop in stock prices across a financial market. It often happens due to panic selling, economic problems, or unexpected global events. When investors lose confidence, they quickly sell their shares, causing prices to fall sharply. Market crashes can lead to financial losses, business failures, and economic recessions. Famous examples include the Wall Street Crash of 1929 and the 2008 Global Financial Crisis. Although crashes can be harmful in the short term, markets often recover over time as economies stabilize and investor confidence returns.
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