Stock market crash is the term used to explain sudden drop or decline of the index in the market. Stock market crashes are not that common and world recorded only two or three major crashes. World has seen some worst crashes before. Stock market crash is followed by panic selling .
World had seen some worst stock market crashes. The trend of crashes shows that the crashes do follow certain pattern. When the bulls dominate the market following positive feed backs for a prolonged period, stock prices does not reflect the right pricing, motivated people pushing the market up for their short term gains like the Harshad mehta scam of India. When the market goes beyond a limit the markets start falling to maintain a standard. When the market starts falling bears start dominating and the price keeps on falling. Bears keeps on selling and short selling to send the market down and make money. The continuing trend is called stock market crash.
