Disruption of financial markets

Other Names:
Stock market crash
International collapse of stock exchanges and bourses

Stock market declines and even crashes are the result of more investors offering stocks for sale than offering to buy stocks. Investor sell stocks because they believe that their price will decline or their returns will decline, i.e. dividends will be lower because of decreasing profits, increasing interest rates or depreciating corporate assets.


Stock market crashes affect even those who do not have direct investments in stocks. Many people who do not own shares have an indirect stake in stock exchanges through their investments in pensions funds and insurance companies. If they don not invest, the companies work for probably do, which means there is less money around to pay for wage increases or jobs.

Related UN Sustainable Development Goals:
GOAL 12: Responsible Consumption and Production
Problem Type:
D: Detailed problems
Date of last update
04.10.2020 – 22:48 CEST