What is a period in which stock prices are steadily decreasing called?

Bear market. a period in which stock prices are steadily decreasing.

When stock prices are steadily decreasing this is an indication of a N?

Understanding Saving and Investing Chapter 10

bear market a market in which stock prices are steadily decreasing over time
bond a debt instrument issued by a corporation or government. Must pay loan principal interest at maturity
bull market a market in which stock prices are steadily rising over time

What is a period of rising stock prices called?

A bull market refers to a period when stock prices consistently rise – as they did in the U.S stock market from 2009 – 2020.

What is referred to as the flip side of overproduction?

And that is called a crisis of underconsumption—the flip side of a crisis of overproduction.

What is a nation’s longest economic slump called?

Key Takeaways. The Great Depression was the greatest and longest economic recession in modern world history that ran between 1929 and 1941. Investing in the speculative market in the 1920s led to the stock market crash in 1929, which wiped out a great deal of nominal wealth.

Why do stock prices decrease?

When investors begin a major sell-off of their shares of a company’s stock, it increases the amount of available stock in the markets. When the supply of the available stock for sale is higher than investor demand to purchase the stock, it leads to a decrease in stock price.

What is a recession in the stock market?

A recession is a significant, widespread, and prolonged downturn in economic activity. Because recessions often last six months or more, one popular rule of thumb is that two consecutive quarters of decline in a country’s Gross Domestic Product (GDP) constitute a recession.

What is it called when stocks go up and down?

By. Candy Schaap. Candy Schaap was a long-time price-action trader in traded futures, options, stocks, and bonds. She co-authored two books about trading and investing.

What are the 4 stages of stock market?

There are four phases of the stock cycle: accumulation; markup; distribution; and markdown. The stock cycle is based on perceived cash flows into and out of securities by large financial institutions.

What are the 4 market phases?

The four stages of a market cycle include the accumulation, uptrend or mark-up, distribution, and downtrend or markdown phases.

What is overproduction Great Depression?

The Great Depression lasted from 1929 – 1941. Overproduction of goods. A main cause of the Great Depression was overproduction. Factories and farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off.

What did the popular term Hooverville represent?

“Hoovervilles,” shanty towns of unemployed men, sprung up all over the nation, named after President Hoover’s insufficient relief during the crisis. Seattle’s developed into a self-sufficient and organized town-within-a-town.

What conditions led to the Great Depression?

While the October 1929 stock market crash triggered the Great Depression, multiple factors turned it into a decade-long economic catastrophe. Overproduction, executive inaction, ill-timed tariffs, and an inexperienced Federal Reserve all contributed to the Great Depression.

What happens to a company when stock prices fall?

When a stock price is falling, the company must sell more shares to raise money. If a stock price falls by a large amount, a company might be forced to borrow to raise money instead, which is usually more expensive.

Why do stock prices drop after good earnings?

Any downward revisions to future sales, earnings, cash flow, and more could lead to concerns over the stock’s future value. Downward revisions or developments that decrease future value expectations can be a fundamental reason why a stock might fall alongside good news.

What are the causes for price fluctuations?

Supply and Demand

Prices and rates change as supply or demand changes. If something is in demand and supply begins to shrink, prices will rise. If supply increases beyond current demand, prices will fall. If supply is relatively stable, prices can fluctuate higher and lower as demand increases or decreases.

Why do stock prices change quizlet?

Stock prices change when traders buy and sell shares based on their view of the future prospects for the stock. The future prospects for the stock are influenced by unexpected news announcements. (new information)Efficient market reaction: The price instantaneously adjusts to, and fully reflects, new information.

Which companies are more affected by January effect?

The January Effect appears to affect small-cap companies more than mid- or large-cap companies due to their lower liquidity.

What is a major advantage of a buy and hold strategy?

A major advantage of a buy-and-hold strategy is: d. lower default risk. Under the buy-and-hold strategy, investors buy stock and do not sell immediately after the price rises.

What basic principle of finance can be applied to the valuation of any investment asset quizlet?

What basic principle of finance can be applied to the valuation of any investment asset? The value of any investment is found by computing the value today of all cash flows the investment will generate over its life.

What basic principle of finance can be applied to the valuation of any investment asset part 2?

Answer and Explanation:

The basic principle of finance that can be used to value any asset is the present value.

What basic principles of finance can be applied to the valuation of any investment asset?

The ‘basic principle of finance’ is that the ‘value of any investment’ is the ‘present value of all future cash’ net flows as generated by the ‘investment’. Explanation: It is basically dependent on the different cash flows in the industry which need to be taken into consideration before evaluating the assets.