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.

More On This Topic

Link to This Definition
Did you find this definition of STOCK MARKET CRASH helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary