Simple English definitions for legal terms
Read a random definition: CPSC
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.