HopefullyInLawSchool
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Simple English definitions for legal terms
down market
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A quick definition of down market:
A down market is when the prices of things people buy and sell, like stocks or goods, are going down for a long time. This is also called a bear market. It's the opposite of a strong market, or bull market, where prices are going up for a long time. When there are more things to buy than people who want to buy them, it's called a buyer's market and prices go down. When there are more people who want to buy things than things to buy, it's called a seller's market and prices go up.A more thorough explanation:
Definition: A down market, also known as a bear market, is a securities market where prices are falling over a prolonged period.
Example: During a down market, investors may sell their stocks to avoid further losses, causing prices to continue to decline. This can lead to a cycle of selling and falling prices.
Explanation: The example illustrates how a down market can create a negative cycle of selling and falling prices. Investors may become fearful of further losses and sell their stocks, causing prices to continue to decline. This can lead to a prolonged period of falling prices, which is characteristic of a down market.