The stock market. Where private companies in the country trade their shares through stock exchanges. For example, if you buy shares of a company, you are a shareholder of that company. Here you can also sell your shares at any time.
There is not much difference between stocks and shares though. But shares refer to a small portion of the ownership of a particular company. And stock refers to all the shares held by one shareholder. Basically companies trade their shares in the stock market through the primary and secondary markets.
The stock market is a place where various private companies trade their shares. It is also called capital market. Currently, the war in Ukraine has caused a major collapse in the stock market. Many investors have lost a huge amount of capital. Although such a collapse in the stock market is not new. The market has stumbled many times in the past. Take a look at some of the events that led to the collapse of the market.
The Brokers Panic of 1906 was a major event in the collapse of the stock market. The stock fell nearly 50 percent on the New York Stock Exchange after shares of NikeBroker Trust were traded.
The stock market plunged in 1929. 10 years of financial growth is popularly known as roaring twenty. At the same time that the American economy was in good shape, its pace was slowly changing. And this is where the problem starts. As a result, on October 25, 1929, the Dow Jones Industrial Average fell by about 12 percent. This day is also called ‘Black Friday’. This incident had a long term effect on the society.
Another fall in the stock market took place on October 19, 1986. The Dow Jones Industrial Average fell more than 22 percent. According to investors, this is the biggest fall in a day. This day is also known as ‘Black Monday’. Naturally, the day after this incident, a huge change took place in the American market.
In October 2006, another major downturn occurred in the stock market. The state of affairs in many of America’s organizations is deteriorating. It also has an effect on the share price. The market continued to decline until mid-2009. The U.S. index fell nearly 50 percent.
In February-March of 2020, the stock market plummeted due to the coronavirus attack around the world. Many years later, such a catastrophic attack shook the stock market. Which had an impact on the financial system of the whole world.
On the other hand, the recent Russia-Ukraine war has caused the stock market to fall sharply. Within minutes of the market opening on the first day of the war, the Sensex fell 1601 points to 52,632. At the same time, the Nifty fell 448 points to 15,696.
The stock market graph has been going through ups and downs for the past few days between the Russia-Ukraine war. The 30-share key index of the Bombay Stock Exchange Sensex started trading at 53,162.51 on Monday, March 6, the first trading day of the week. The Sensex fell by 1161.3 points in a single push at 9:15 am during pre-market trading. On the other hand, Nifty also started trading at the red mark that day. Earlier, the market capitalization of seven of the top 10 companies in the stock market fell by Tk 2.11 lakh crore.
Foreign portfolio investors raised Rs 16,538 crore from the Indian stock market in just three trading days in March (March 2 to March 4). Business sentiment has been adversely affected by the uncertainty caused by the Ukraine crisis and the rise in crude oil prices. In addition, foreign portfolio investors are withdrawing investment from the Indian stock market in view of the devaluation of the Indian currency against the dollar.