Examining the Influence of Black Swan Events on Stock Market Dynamics

Abstract

This research investigates the ramifications of black swan events on stock market performance. Black swan events are characterized by their highly improbable and unforeseen nature, exerting significant impacts on financial markets, particularly stocks. The study undertakes the task of identifying, categorizing, and analyzing these events along with their consequences on stock prices, volatility, and investor sentiment. Through the analysis of historical data and the application of statistical methodologies, the research aims to offer insights into the magnitude and duration of stock market effects triggered by black swan events. Additionally, it examines investor sentiment during such events and proposes enhanced risk management strategies to mitigate their adverse effects.