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Antonio Guevara

Professor Nelson

ENGL 1302

10 September 2021

Stock Market Crashing

Introduction

The Stock Market has existed from 1817 to present day. It is used by investors to make

big profits by owning shares of a company. But, not all investors gain from it some of them lose

a lot of their money. There has been numerous Stock Market crashes meaning that in the crashes

investors lose millions of their profits. For example, the most recent crash was in March of last

year when COVID-19 hit the United States and then eventually the rest of the planet. The market

is a big part of the U.S. economy since it reflects how well our economy is. Some situations are

questioned as to why the market did crash.

Explanation of the Experiment

For this paper an experiment will be conducted as to why the Stock Market crashes and

how much profit is lost because in some instances the market technically doesn’t crash but a

good amounts of stocks do lose a lot of money. Some people get confused when the market

crashes because there are days where a lot of stocks lose a lot but that doesn’t mean it crashed

entirely some days are bad for stocks and some days are good. The research will be on different

crashes, what caused it to crash, and how much was lost during that crash.

Whales in the Market

Whales to investors are considered to be the people that have a lot of shares in a

company. Basically, the whales sort of control how stocks move. If whales sell their shares in a
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stock to secure their profits then the stock will go down drastically since the market cap

decreased. The market cap of a stock is how much money is invested in it. There are some days

that a lot of whales sell their shares in different stocks and that is what makes the market crash

since there is so much selling going on.

Over-hyped/Reddit Based Stocks

Over-hyped stocks are stocks that a lot of people start talking about and start hyping it up

and in result of that the price of the specific stock goes up a lot. Also, on the app Reddit there is a

group called “Wall Street Bets” and on that group people post what stock to hype up so people

can make big profits from it.