Crash means that for some reason, a large number of securities are thrown out in the securities market, which leads to an infinite decline in the price of the securities market. I don't know how much it can stop. This phenomenon of selling securities in large quantities is also called selling in large quantities. A plunge is usually defined as a cumulative decline of more than 20% in a single day or several days. During the 1987 crash, the Dow Jones index plunged 22.6% in a single day. 1929 dropped by 12.8% and 1 1.7% respectively for two consecutive trading days. Chinese-style stock market crash looks back at home. Although the development time of China's stock market is relatively short compared with western developed market economy countries, it still experienced two soul-stirring stock market crashes. One occurred in 1996. 1996 after the national day, the stock market was all red. From April 1 to February 9 1, the Shanghai Composite Index rose by 120%, and the Shenzhen Component Index rose by 340%. In order to cool down, the CSRC issued various regulations and notices later called "12 gold medal", but the market continued to climb. 65438+February 65438+June People's Daily published a special commentator's article "Correctly Understanding the Current Stock Market", which defined the stock market as "the recent sharp rise and fall is abnormal and irrational." The rise was finally contained. The Shanghai Composite Index reached its limit at the opening. Except for a few small-cap stocks, which closed down all day, they still fell the next day. All the book wealth of all investors who held positions three days ago evaporated. The other occurred at 200 1. On July 26 of that year, the reduction of state-owned shares officially began in the issuance of new shares. The stock market plummeted and the Shanghai Composite Index fell by 32.55 points. By June 10 and 19, the Shanghai Composite Index plunged from 2245 in June 14 to 15 14, and more than 50 stocks fell. In that year, 80% of investors were quilted, the net value of the fund shrank by 40%, and the brokerage commission income decreased by 30%. Compared with the foreign stock market crash, China's stock market crash has different reasons, but all of them have some characteristics: the trend of the stock market is seriously divorced from the fundamentals of the economy, so it is doomed to be unsustainable. At the first sign of trouble, the whole line will collapse, and people in the stock market are too speculative, either fighting hard when the wind and rain come, or chasing up and down by feeling, which will inevitably lead to a tragic ending. [Edit this paragraph] There are many direct reasons for the stock market crash, but at least one of the following conditions should be met:

1, a country's macroeconomic fundamentals have deteriorated seriously, making it difficult for listed companies to operate;

2. Low-cost direct financing leads to "inefficient" financial and "inefficient" economic development, which greatly leads to a bubble and the stock price is seriously overvalued.

3. There are serious defects in the listing and trading system of the stock market itself, which leads to the prevalence of speculation and the loss of investment value and resource allocation function of the stock market.

4, political, military, natural disasters and other crises have seriously hit the confidence of the securities market, and the securities market has psychological panic and cannot continue to operate normally.