MANAGEMENT

Detailed explanation-1: -Systemic risk is a domino effect. A single event will start a ripple effect that causes a major economic crisis. Many economic crises are indeed the effect of systemic risk. A famous example of systemic risk is the 2008 stock market collapse.

Detailed explanation-2: -Most market crashes are usually short bursts of market downturns that can last for a single day or much longer to bring investors heavy losses. Historical examples of stock market crashes include the 1929 stock market crash, 1987 October stock market crash, and the 2020 COVID-19 stock market crash.

Detailed explanation-3: -Key Takeaways Stock market crashes can reduce business financing and consumer confidence, both of which can cause recessions. These types of crashes typically occur after periods of irrational exuberance, when investors stop caring about whether a stock’s price accurately reflects the company’s value.

Detailed explanation-4: -The Wall Street Crash of 1929, also known as the Great Crash, the Crash of 29, or Black Tuesday, was a major American stock market crash that occurred in the autumn of 1929. It started in September and ended in mid November, when share prices on the New York Stock Exchange collapsed.

Detailed explanation-5: -What Is a Crash? A crash is a sudden and significant decline in the value of a market. A crash is most often associated with an inflated stock market, though any market can crash, for example, the international oil market in 2016.