The history of stock market crashes

Academic Paper from the year 2018 in the subject Business economics - Investment and Finance, grade: A, Post University (Malcolm Baldrige School of Business), language: English, abstract: This paper was written in the course "Investment Management". It outlines the history of stock market crashes that occurred throughout time. Starting with the first big crash, the tulip mania, in the years of 1636 and 1637. Following, further big crashes up to recent days are presented and the reasons and outcomes of these are explained.

A stock market crash can be defined as an extreme price collapse on the stock market. Usually this process takes a few days to a few weeks. During this period mostly panic sales, which generate a large excess supply and thus lead to drastically falling prices dominate the scene.