A stock market boom is a sudden dramatic gain of value of shares of stock in corporations. Booms are driven by a fertile environment usually formented by the tech industry or a sudden discovery of a valuable natural resource.

Some famous booms in America were the roaring 20s era and the Dot-com tech boom of the 1990s. Stock market booms can sometimes be proceeded by stock market crashes because of the stock market bubble aspect and corruption created by the boom. If left unchecked it can create a stock market crash.

The most famous crash in 1929, (known as the Stock Market Crash of 1929) when the Dow Jones Industrial Average dropped 50%, preceded the Great Depression.

There was also a crash or "adjustment" on Monday October 19, 1987, known in financial circles as Black Monday, when the Dow Jones lost 22% of its value in one day, bringing to an end a five-year bull run. The FTSE 100 Index lost 10.8% on that Monday and a further 12.2% the following day. The pattern was repeated across the world.

The stock market downturn of 2002 was part of a larger bear market and a Dot-com stock market bubble created by companies like Enron; and the government's mishandling of such companies.

See also

• Behavioral finance
• Economic collapse
• Equity investment
• Financial markets
• List of stock market crashes
• Stock market
• Stock market bubble
• Dot-com
• Market trends

External links

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• Stock Market Crash! — Learn about history's worst stock market crashes.

Stock market crashes | Economic history | Market trends

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