What caused the stock market crash of 1997?

What was one cause of the stock market crash?

Among the other causes of the stock market crash of 1929 were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.

What were three major reasons that led to the stock market crash?

The three major reasons that led to the stock market crash were overextended credit, uncontrolled spending, and overproduction.

How was the stock market in 1997?

On October 27 and 28, 1997, the nation’s securities markets fell by a record absolute amount on then-record trading volume. On Monday, October 27, the Dow Jones Industrial Average (“DJIA”) declined 554.26 points (7.18%) to close at 7161.15. This represented the tenth largest percentage decline in the index since 1915.

What made the financial crisis in 1998 ended?

After 30 years in power, Indonesian President Suharto was forced to step down on 21 May 1998 in the wake of widespread rioting that followed sharp price increases caused by a drastic devaluation of the rupiah. The effects of the crisis lingered through 1998.


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GNP (US$1 billion) June 1997
July 1998

What were three major reasons that led to the stock market crash quizlet?

Terms in this set (32)

  • many stock purchases were made “on margin”; stocks bought on margin depended on the value of the stock increasing.
  • the banking system was largely unregulated.
  • industries had over-expanded and have accumulated to large amounts of debt.

How much did the market drop in 2008?

On October 24, 2008, many of the world’s stock exchanges experienced the worst declines in their history, with drops of around 10% in most indices. In the U.S., the DJIA fell 3.6%, although not as much as other markets.

How did stock market crash in 2008?

The stock market crash of 2008 was as a result of defaults on consolidated mortgage-backed securities. Subprime housing loans comprised most MBS. Banks offered these loans to almost everyone, even those who weren’t creditworthy. When the housing market fell, many homeowners defaulted on their loans.

Was there a stock market crash in 2001?

The terrorist attack on Sept. 11, 2001 was marked by a sharp plunge in the stock market, causing a $1.4 trillion loss in market value. The first week of trading after the attacks saw the S&P 500 fall more than 14%, while gold and oil rallied.