The Great Stock Market Wobble of 2020!
Images
Stock market crash (2020, DJIA 2017-01-03 through 2020-03-16 opening low)
Key Facts
What's a Stock Market Anyway?
Think of the stock market like a huge store where people buy and sell tiny pieces of big companies, like your favorite toy company or a pizza place. When lots of people want to buy these pieces, the prices go up! But sometimes, when people get worried, they want to sell their pieces quickly, and the prices can drop really fast.
This is what happened in 2020, making the market wobble like a jelly on a plate!
When the World Got a Little Scared
In early 2020, a new sickness called COVID-19 started spreading around the world. People were worried about getting sick and about how it would affect everything, including businesses. This worry made many people want to sell their company pieces, causing the stock market to tumble down, down, down! It was like everyone suddenly wanted to get off the playground slide at the same time.
The Big Drop!
From February 20, 2020, to April 7, 2020, the stock market had a big crash. Prices dropped so much that it was like losing the height of a tall building in just a few weeks! This made many grown-ups feel concerned because their money is often tied up in these company pieces. It was a very fast and surprising event for everyone.
Picking Up the Pieces
After the big wobble, things started to get better. By April 2020, the stock market began to climb back up, like slowly getting back on the slide. It took a while for the prices to reach where they were before the crash, but people kept working to make things stable again. It shows how even after a big scare, things can start to heal and grow.
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