stock market crash

A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles. Generally speaking, crashes usually occur under the following conditions, a prolonged period of rising stock prices and excessive economic optimism, a market where P/E ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants. Stock market crashes are social phenomena where external economic events combine with crowd behavior and psychology in a positive feedback loop where selling by some market participants drives more market participants to sell.

yes friend you did choiced good topic for a post. i am a management students so i do have some knowledge about stock market crash. but this posting is also helpful in remaining me my knowldges.

The politics of the country directly affects the increase and decrease of stock market. In our country too, due to unstaible governmet, many times stock market crash has taken place.