Stock Market Crisis in Spain and their Comparison with Other International Market: Analysis of the Principal Characteristics

Abstract

Regularly there are periods of a dramatic decline in stock markets that are defined as “stock market crashes” and cause “stock market crisis”. Analysis of the influence of this crisis over the Spanish stock market and their repercussions can enable stockbrokers and investor to use anticipating strategies. The most outstanding empirical variables which define a crisis, which are the object of this study, are the maximum drawndown percentage, de duration of the decline and the recovery time. The comparison of these variables with those obtained from the American, German and English markets analysis allows us to see the degree of correlation between these crises and to do forecasting.