Simple English definitions for legal terms
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A receding market is a type of bear market where prices of securities or commodities fall over a prolonged period. This means that there is a decrease in demand for these goods or services, resulting in lower prices.
For example, during the 2008 financial crisis, the housing market in the United States experienced a receding market. The demand for houses decreased, causing the prices to fall. This led to a decrease in the value of mortgage-backed securities, which caused a ripple effect throughout the financial system.
Another example of a receding market is the decline in demand for coal due to the shift towards renewable energy sources. As a result, the prices of coal have been falling, causing a decline in the coal industry.
These examples illustrate how a receding market can have a significant impact on the economy and the financial system.