NordenBladet – The stock market never sleeps and every event is unique and new. However, it is said that situations tend to repeat themselves and those who do not remember the past live without a future. Russia’s attack on Ukraine is currently the biggest market changer. But what other events have brought big ups and downs to the stock market? We highlight ten interesting stories about the stock market that are definitely worth mentioning.
What are ten most interesting stories or situations about the stock market?
The GameStop short squeeze: In January 2021, a group of retail investors organized on the subreddit r/wallstreetbets coordinated to buy shares of GameStop, a struggling video game retailer, in order to cause a short squeeze. The stock price of GameStop skyrocketed, causing significant losses for hedge funds that had bet against the company. The situation drew attention to the power of retail investors and the potential for social media to influence the stock market.
The 2008 Financial Crisis: The 2008 financial crisis was caused by a combination of factors, including a housing market bubble, lax regulation, and risky lending practices. The crisis led to the failure of several large financial institutions and a global recession. The government intervened with a series of measures, such as the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act of 2009, in order to stabilize the economy.
The Dot-com Bubble: The dot-com bubble was a period of speculation and hype surrounding internet-based companies in the late 1990s. Many investors poured money into these companies, driving up their stock prices to unsustainable levels. When the bubble burst in 2000, many of these companies went bankrupt and investors lost significant amounts of money. The dot-com bubble is often cited as an example of irrational exuberance in the stock market.
Black Monday: On October 19, 1987, the stock market experienced one of the largest single-day crashes in history, with the Dow Jones Industrial Average dropping by 22.6%. The cause of the crash is still debated, but some factors that contributed to it include high levels of debt, trade imbalances, and a lack of investor confidence.
The Tesla stock rally: In 2020, the stock price of electric car manufacturer Tesla increased by over 600%, making it the most valuable car company in the world. The rally was driven by strong demand for electric vehicles, as well as by CEO Elon Musk’s tweets and public statements.
The China-US Trade War: The ongoing trade tensions between the United States and China has had a significant impact on the stock market. The tariffs and other trade measures imposed by both countries have led to uncertainty and volatility in various sectors of the market.
The 2020 COVID-19 market crash: The outbreak of the COVID-19 pandemic in 2020 led to a sharp decline in the stock market, as investors worried about the economic impact of the virus. The S&P 500 index fell by 34% between February 19 and March 23, 2020, marking one of the fastest bear markets in history.
The 1987 insider trading scandal: In the late 1980s, a number of Wall Street firms and traders were found to have engaged in insider trading, using non-public information to make profitable trades. The scandal led to the conviction of several high-profile individuals, including Ivan Boesky and Michael Milken, and led to increased regulation of the securities industry.
The Enron Scandal: In 2001, energy company Enron was found to have engaged in accounting fraud, overstating its profits and hiding its debts. The scandal led to the bankruptcy of the company and the loss of thousands of jobs. It also led to increased regulations and oversight of publicly traded companies.
The 2008-09 Financial Crisis in Greece: The global financial crisis of 2008 had a severe impact on Greece’s economy, which was already struggling with high levels of debt. The crisis led to a loss of investor confidence in Greek bonds, and to a sovereign debt crisis. The Greek government was forced to seek financial assistance from the European Union and the International Monetary Fund.
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Source: NordenBladet.ee