October Effect – level 2
The October Effect is a theory that stock markets fall in the month of October. People believe this theory because some important events that made negative changes on stock markets happened in October.
In October 1907, the New York Stock Exchange fell dramatically. On October 24, 1929, one of the worst economic events in history happened. This day is called Black Thursday, and it was the start of the Wall Street crash. In October 1987, stocks also fell on Wall Street, and it started a global crisis.
Some people believe that the October Effect is real, and some businessmen see this month negatively. However, similar bad events happen in other months, too.
Difficult words: stock market (the business with shares of companies; shares are parts of companies that you can own), stock exchange (a place where people do business with shares of companies), stock (things and money that a company has), crisis (a bad problem).
You can watch the original video in the Level 3 section.
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