Hi...hi.....hiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
--- Lee Cwan Yeuw <[EMAIL PROTECTED]> wrote: > A stock market crash is a sudden dramatic decline of > stock prices across a significant cross-section of a > stock market. Crashes are driven by panic as much as > by underlying economic factors. They often follow > speculative stock market bubbles. > > Stock market crashes are social phenomena where > external economic events combine with crowd > behaviour and psychology in a positive feedback > loop where selling by some market participants > drives more market > participants to sell. Generally speaking, crashes > usually occur under > the following conditions: a prolonged period of > rising stock prices and > excessive economic optimism, a market where P/E > ratios exceed long-term averages, and extensive use > of margin debt and leverage by market participants. > > There is no numerically-specific definition of a > crash but the term > commonly applies to steep double-digit percentage > losses in a stock market index over a period of > several days. Crashes are often distinguished from > bear markets > by panic selling and abrupt, dramatic price > declines. Bear markets are > periods of declining stock market prices that are > measured in months or > years. While crashes are often associated with bear > markets, they do > not necessarily go hand in hand. The crash of 1987 > for example did not > lead to a bear market. Likewise, the Japanese Nikkei > bear market of the 1990s occurred over several years > without any notable crashes. > > 28 October 1997 > U.S. stock markets were widely expected to open > lower for October 28 > due to the Asian markets falling even more than they > did on the 27th. > Hong Kong's Hang Seng Index declined a staggering > 14%. The Nikkei fell > 4.26%. The U.S. stock markets initially continued > their drop from the > 27th, but abruptly ended, and began to climb. The > Dow was down as much > as 186 points by 10:06 A.M., and soon thereafter a > rally started. By > 10:20 A.M. The Dow was down only 25 points. Five > minutes later, the Dow > roared back into positive territory and was up 50 > points. Nine minutes > later at 10:34 A.M., the Dow rallied to a > triple-digit advance up > 137.27 points. Stock prices continued to soar in > choppy trading > throughout the rest of the day. At the close of > trading at 4:00 P.M., > the Dow finished with a record 337.17 point gain > (recovering 61% of the > previous day's loss) to close at 7,498.32. The > market restored $384 > billion of the $663 billion in market capitalization > lost the previous > day. One billion shares were traded on the New York > Stock Exchange for the first time ever, with a > volume of 1.21 billion shares. In 2006 > terms, this amount is considered very light. The > NASDAQ Composite also > made a record gain on record volume, gaining 67.93 > to 1,603.02. The > NASDAQ also saw its first-ever one-billion share day > with 1.23 billion > shares changing hands. > > > Save your money...before you will be TRAPPED > > > > > > > __________________________________________________________________ > > Yahoo! Singapore Answers > Real people. Real questions. Real answers. Share > what you know at http://answers.yahoo.com.sg __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com
