What Is a Stock Market Crash?
A share is a small piece of ownership in a company; its price is what buyers and sellers agree on right now.
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1.What is a stock market crash?
A share is a small piece of ownership in a company; its price is what buyers and sellers agree on right now.
2.A share costs 100 with 10 of your own money. A 10 percent fall leaves 90. What happens to your part?
Borrowing can turn a fall into a rush: lenders and borrowers both want out; in 1929 buyers often paid about 10 percent.
3.Two indexes fall by 100 points; one stands at 1,000 and the other at 20,000. Which fall is bigger?
Points tell you the size of a step; percent tells you the size of the loss.
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Sources (2)
- Federal Reserve History: Stock Market Crash of 1987 (Bernhardt, Eckblad)
- Eigene Rechnung (Python, decimal): Prozentverlust
Education only. Not financial advice.