Analyzing the Stock Market Crash - Dissertation Example

From this paper it is clear that the stock market crash is referred to as a decline in the price of stocks of companies that have listed themselves in stock exchange. It results in the decrease of paper wealth which is often caused by panic than economic indicators of the country. The stock markets are crashed due to various reasons but mostly they occur due to the high prices of stocks that remain for a longer period of time. The first ever stock market crash was observed in 1929 due to increase of borrowing from the banks.

People were beginning to think that the prices of stocks would remain all time high. It was an era when radio was invented by Marconi, and people were happy to see their stocks soar while becoming jubilant by viewing the performance of their company increased. Investors were investing their money through borrowing from banks which made it impossible to repay the amount when the stock market unexpectedly crashed in 1929. United States recalled the loans that were provided to European markets which affected the European market because of their imbalance of payments.

This study declares that the stock market crash of 1929 were followed by the ‘Black Monday’ of 1987, the recession of 1990, the Asian crisis which started on 1997 and disrupted the economy of Asian giants. The Asian recession was followed by currency crisis in Russia in 1998 in which Russian domestic problems were held responsible for the crash.. The stock markets are crashed due to various reasons but mostly they occur due to the high prices of stocks that remain for a longer period of time.

The first ever stock market crash was observed in 1929 due to increase of borrowing from the banks. People were beginning to think that the prices of stocks would remain all time high. It was an era when radio was invented by Marconi, and people were happy to see their stocks soar while becoming jubilant by viewing the performance of their company increased. Investors were investing their money through borrowing from banks which made it impossible to repay the amount when the stock market unexpectedly crashed in 1929.

United States recalled the loans that were provided to European markets which affected the European market because of their imbalance of payments. The after effects of stock market crash have long lasting impression on the overall economy of the country. It also affects other countries that have close relation and bilateral ties with the affected country. The results include devastating effect on the economy. Similarly, the stock market crash had influenced the rise of the Great Depression which in turn prompted countries to invade other countries to gather resources.

The invasion resulted in the World War II which caused millions of people to die at the hands of others. The stock market crash of 1929 were followed by the ‘Black Monday’ of 1987, the recession of 1990, the Asian crisis which started on 1997 and disrupted the economy of Asian giants. The Asian recession was followed by currency crisis in Russia in 1998 in which Russian domestic problems were held responsible for the crash. After the Russian crisis, the dot-com bubble distorted the economy Worldwide. The