Abstract

The Great Recession Period or The Global Financial Crisis which majorly occurred due to the deregulation in the financial industry had varied and significant impact on the stock markets of various countries all over the world. One of the major event within this financial deregulation detailed easy availability of housing mortgages which had a direct quantifiable effect that is huge numbers of general public subscribing to this event. However, this set of events ran its course when due to eventual fall in people’s ability to pay mortgages led to major decline in security backed by mortgages. These mortgage-backed securities (MBS) for the starting period, is said to offer attractive rates of return. However, eventually the lower credit quality of securities ultimately led to the causation ofbig defaults. The prove of the above stated statement reflected in reality when several banks, financial institutions and the economy as a whole had lost huge amount of money. Finally, this run resulted in having a global financial crisis which affected various stock markets.This paper describes the effect of the Great Recession Period or the Global Financial Crisis on stock market of three nations-India, United Kingdom and United States of Americaby acknowledging it through statistical analysis. The time period taken for study has been divided into three parts as pre-crisis period, during-crisis and post-crisis period and the performance of stocks will be evaluated during different periods.

Key words: Global Financial Crisis, mortgage-backed securities (MBS), Great Recession Period