The Souk Al-Manakh Stock Market Crash
Introduction
In August of 1982, an informal Kuwait stock market known as Souk al-Manakh collapsed (Rasmaroni, 2006). This happened when a female speculator presented a post-dated check for payment and it bounced (“Kuwait's Souk”, n.d.). This relatively small destabilising factor caused enormous losses, and the financial system was nearly crippled with some $92 billion (Rasmaroni, 2006) from about 6,000 investors (“Kuwait's Souk”, n.d.). Is this event the only factor that caused the crash? And what made the crash so huge? To reveal the answer we have to dig deeper into history.
Definitions
It might be interesting to explain some technical terms before we dig deeper into history. It is essential to understand them in order to know what the text is about.
post-dated check: “A check issued at present but with a later maturity date so it cannot get encashed at the present date. The check is like a promissory note and no legal action can be taken if the account......
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Approximate Pages: 10 (250 words per double-spaced page)
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The Souk Al-Manakh Stock Market Crash
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