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Share markets or stock markets offer an organized and secure platform where interested people can invest in shares, equities, and other financial securities. The exact cause of each share market crash can be extremely complicated. The stock market crashes due to incorrect speculation, leverage, and other crucial factors like foreign policies and global markets, internal insurgencies or war, inflation, demand supply, etc. This fishbone provides some knowledge on the different causes of a stock market crash.

Share Market Crash
International/ national events and issues

•         Political risks
•         Internal conflicts
•         Unforeseen natural disaster
•         Change in government
•         Insurgencies or war

Global markets

•         World economy declines
  • Affects domestic share market
•         Global exchange drop
•         Foreign investment
  • Volatility in shares

Supply and demand

•         Excessive  leverage
•         Broken demand & supply chain
•         High supply low demand
  • Share price falls
•         High demand but low supply
  • Share price rises

Economic factors

•         Devaluation
•         Change In economic policy
•         Financial/ political shocks
•         Declining economy
•         Tax increase
•         Inflation/ deflation
•         Varying interest rate

Other issue

•         Irrational speculation

We aim to provide a solution through our visual fishbone analysis tool to perform root cause analysis in easy and simple steps. The cause arrangements are well structured, hierarchical, and comprehensive. This fishbone template exhibits the vital causes of the stock market crash. It is a good reference for future incident/root cause analysis in any specific or general situation.

Who should use the Share Market Crash template?

• This template is beneficial for anyone interested in the stock or share market. It allows you to study the risk factors involved before making any investment. One can take necessary actions with advanced knowledge on the cause and effects of any process more efficiently. We welcome everyone to work with our templates.

 Why use this template?

• It’s easy to understand the protocol followed during the analysis of factors that affect the stability of a stock market.
• Shares knowledge on incident analysis.
• Create and change your template or use this for your own problem-solving.

Curated from community experience and public sources:

• https://www.angelbroking.com/knowledge-center/share-market/why-share-market-down
• https://www.fool.com/investing/2018/02/17/6-things-that-could-cause-a-stock-market-crash.aspx