Stock market crashes happen quickly and without warning causing the value of stocks to drop sharply. Fear pervades the markets causing the value of stocks for other shareholders to fall which in turn, causes more selling.
Consequently, investors stand to lose a significant amount of capital.
If we wish to understand the performance of exchange listed stocks, we should analyze indexes such as the Nasdaq, S&P 500, and Dow Jones Industrial Average.
Analysts have been whispering about the possibility of a stock markets crash greater than the plunge seen at the beginning of the 2020 Coronavirus pandemic’. Is there still a risk of a stock market crash?