The reasons for the stock market decline are mainly as follows:

First, credit expansion is blocked.

Second, Public Offering of Fund's "group-holding" investment was blocked, and the heavily valued fund stocks entered the journey of valuation return.

third, there is a trend change in the monetary policy of the Federal Reserve.

fourth, the issuance of new shares has accelerated, and the pressure on the original shareholders to cash out has gradually become apparent.

the development path of the securities market is not exactly the same, but it usually goes through five stages.

first, the dormant stage: not many people know about the securities market at this stage, and there are few companies whose shares are publicly listed. However, after a long period of time, investors find that even if the potential capital appreciation is not counted, the dividends they get exceed the income obtained by other investment forms, so they buy stocks, but they are still cautious at first.

second, the manipulation stage: some securities brokers and dealers find that because there are not many stocks and the liquidity is limited, they can drive up the price by buying a small number of stocks. As long as the price continues to rise, it will attract others to buy, and then the manipulator can make huge profits by selling stocks. Therefore, they began to coax down the market price, manipulate the market and make huge profits.

third, the investment stage: some people have gained a lot of capital appreciation by buying and selling stocks. No matter what they have realized or just on the books, the demonstration effect of these huge profits will attract more people to join the ranks of speculation, and the speculative stage will begin. The stock price greatly exceeds the actual value, and the trading volume will skyrocket. The newly issued shares are often oversubscribed, which attracts many companies to issue shares, and the shareholders who were reluctant to sell also sell shares to make a profit, thus expanding the supply of listed shares.

fourth, the collapse stage: at a certain time, the sources of funds used for speculation will be exhausted, and fewer and fewer new shares will be subscribed, while more and more investors will calm down and begin to realize that the stock price has been raised too high, which is far from its original value. At this time, as long as there is a sign of trouble outside, the stock price will shake, and then the price will start to fall.

5. Maturity stage: After the stock market falls, it will take months or even years to restore public confidence in the stock market. The length of this time depends on the extent of price drop, the stimulation of buying new stocks, the behavior of institutional investors and other factors. The falling market has caused these people to lose a lot of money. They only keep it for long-term investment, hoping that the price will rise in the future. Some private investors become cautious, some new investors who have not experienced the collapse stage join in, and the ranks of institutional investors have also expanded. In this way, the mature stage has begun. The stock supply here has increased, the liquidity is greater, investors are more experienced, and the trading volume is more stable. Although the stock price will still fluctuate, it will not be as intense as before, but fluctuate with the development of the economy and enterprises.