Crash

Crash A sharp fall in share prices within a short period. For example, the BSE Sensitive Index stood at 4546 points on 2 April 1992 . By the end of the trading day on 12 May it had slumped to 3086 points – a fall of 1460 points. On three successive trading days, 6, 11 and 12 May, the BSE Sensitive Index fell by 327 points, 238 points, and 334 points respectively, before it rose again. This particular crash had nothing to do with industrial depression. It was triggered off by ‘fraudulent bank transactions of a big bull, who had orchestrated an unprecedented stock market boom. See also SELF-FULFILLING PROPHECY.

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