Simple English definitions for legal terms
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A downside trend is when the stock market shows a decrease in stock prices. This means that the value of stocks is going down. It is also called a down trend.
Definition: A downside trend refers to a period in the stock market cycle where there is a consistent decline in stock prices.
Example: During a downside trend, investors may experience losses in their stock portfolio as the value of their stocks decreases over time.
This term is important for investors to understand as it can help them make informed decisions about buying or selling stocks. By recognizing a downside trend, investors may choose to sell their stocks before they lose too much value or avoid buying stocks until the market begins to recover.