Stock market crash explained to kids

A stock market crash is a sudden, sharp decline in stock prices. It can happen when investors become worried about the future of the market and start selling their stocks. A stock market crash can have a ripple effect, causing other markets to decline as well. The most famous stock market crash in the United States happened on October 29, 1929, which is known as Black Tuesday. On that day, the Dow Jones Industrial Average (DJIA) fell by almost 25%. This was the start of the Great Depression, a period of economic decline that lasted for more than a decade. There have been other stock market crashes in the United States since 1929, including the 1987 crash, when the DJIA fell by more than 20%. Most recently, there was a sharp decline in stock prices in March 2020, during the COVID-19 pandemic. A stock market crash can have a number of causes, including economic recessions, wars, and natural disasters. When a crash happens, it can be difficult to predict how long it will last and how far stock prices will fall.