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Definition

A sudden fall in stock market prices, sometimes in a single trading day, and which is usually followed by a bear trend. This happens generally because market prices have risen to unrealistically high levels, but also because of economic conditions and a growing panic in the market. The crash of 1929 (Black Tuesday) saw the markets fall by more than 9% in just one day. Subsequently, in the bear trend which followed, the Dow Jones industrial index lost 89% of its value over 30 months and the market did not return to its 1929 peak until 1954.The 1987 crash saw the Dow Jones industrial index fall by 23% in one day.

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