The last few weeks have been a tumultuous time for share markets. We have seen large declines in share prices but how do you know if a share market is crashing or having a correction? Definition of Crash and Correction A stock market crash is a sudden drop in share prices caused by fear and panic. A crash occurs when the market falls more than 10% in one day. A market correction is normal for share markets and this occurs …
The month of October 2018 has been a rough ride for global stock markets. We had significant drops on the Australian market which saw the S&P/ASX 200 dropping 164.90 points on 25 October and was trading near its 12-month low. The Australian share market was down 10% from the 2018 highs. Although the market has had a significant drop, it would be classified as going through a correction and not a crash. A crash is more severe as recession and …
Read MoreThe Difference Between a Stock Market Correction and Stock Market Crash