The Law Dictionary

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STOCK MARKET CRASH Definition & Legal Meaning

Definition & Citations:

1. A rapid and steep decline in price of shares created by a selling panic. Triggered by investor’s losing confidence after a unexpected situation arose. 1929 US market crash destroyed more than 14 billion dollars of value. 1987 destroyed 500 billion dollars. See Black Monday’s. 2. Sudden and major decline in prices of underlying stock.

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