Market Crashes - Catalyst to Evolution of Stock Markets

Bombay Stock Exchange Limited
In Mumbai


Important information

  • Training
  • Mumbai
  • Duration:
    2 Days

Important information

Where and when

Starts Location
On request
See map

Course programme

When the market is peaking and investors are buying and making profits, the market is commonly known as a bull market. In the event of strong economic times are often followed by bad times. Whenever the stock market surges and profits are good, economic downturn eventually happens which leads to crash in the stock market.Sometimes, stock markets crash because of a specific economic or political situation. When you will be studying this course, you will be able to know History of stock market crashes, What happens when the stock market crashes, who are the parties affected by it and many more issues and matters associated with stock market crash. Stock market crash can be catastrophic for an investor .In the history of stock trading; stock market crash had been a repetitive issue. Contents of the programmeAnalysis of various recessions / downturnso Episodes studied (These six have been chosen for the differences in them):· The great depression (1929-1939)· Economic terminology: Definitions of certain economic terms like recession, depression, market crash, downturn, etc.· Economic cycles· The securities scam in India (1992)· The flaws in the banking system that were exploited· Risk of physical certificates· Transparency in the security markets – evolution over the years· The Asian contagion and the fall of Long Term Capital Management (1998)· Capital flows and the contagion effect – introduction to decoupling· Understanding role of leverage· (Il)liquidity and its impact· Black swan – a six-sigma event· Dot-com bust (2000-2001)· Valuation of stocks· Mania· The Indian angle – the difference between Indian technology companies and the Dot Com companies· Subprime crisis (2007-2009)· Risk of risk measurement· Problem with lack of transparency· Understanding derivative products – difference between OTC and exchange traded derivatives· Decoupling revisited· The Indian angle – why India came unscathed The observationso The common themes· In spite of the differences between various episodes, there has been a common thread – a common patterno Drawing parallels between various episodes· This section compares parallels between various episodeso Anatomy of a crash· How does the whole market crash happen?· Is it possible to identify a crash in advance?· Lessons from financial market crisiso What can we learn out of the history?o Investor behaviour in times of crisis: Some behavioural finance concepts and the common mistakes made by investorso Advisor behaviour: The mistakes that the advisors make at times – especially at turning pointso Structural and regulatory controls How to safeguard one's portfolio