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LSDefine
Simple English definitions for legal terms
receding market
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A quick definition of receding market:
A receding market is when the prices of things people buy and sell go down for a long time. This is also called a bear market. It's like when you go to the store and the things you want to buy are cheaper than usual because not many people want to buy them. This can happen with things like stocks and commodities too.A more thorough explanation:
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.