What was the cause of the market crash?? why did it happen??
2007-02-08 10:56:56 · 3 answers · asked by maine1234432 1 in Arts & Humanities ➔ History
Basically people were borrowing money to invest to make more and lost it all the stocks they bought were worth alot less after they bought it and couldnt pay it back to those they borrowed from
2007-02-08 11:07:59 · answer #1 · answered by barry m 6 · 0⤊ 0⤋
Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days.
Check here http://penny-stock.gelaf.info
Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved but you can even make very big money. These risks include limited liquidity, lack of financial reporting, and fraud. A penny stock is a common stock that trades for less than $5 a share. While penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market. Although a penny stock is said to be "thinly traded," share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.
2014-10-17 02:15:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The market crashed because of junk bonds.
2007-02-08 20:41:50 · answer #3 · answered by nmp948 4 · 0⤊ 0⤋