A market decline typically refers to a situation where stock prices across a broad section of the market are falling due to various factors such as economic uncertainty, negative news, or investor sentiment. It indicates a general downward trend in stock prices and can impact investors' portfolios and overall market sentiment. Investors may employ strategies to navigate or capitalize on market declines, such as diversifying their portfolios, investing in defensive sectors, or seeking to buy undervalued assets.
bear apex ♥lluvyanna.
Bear
bear apex ♥lluvyanna.
A Bear market is the term used when a stock market is in decline, a Bull market is going up.
bull
bull
In the year 2008 stock markets declined because of the global economic crisis Generally stock markets decline when there are more sellers than buyers. If there is large scale selling of stocks the stock prices tumble which in turn brings down the stock market.
Making profit from savings, describes someone's expected outcome from investing in the Stock Market. Making profit from savings
Making profit from savings, describes someone's expected outcome from investing in the stock market. Making profit from savings
People selling their shares
The beta is the relationship of a stock's expected return to the broad market's return. A "high beta" stock will have a beta over 1.00, and thus move up more than the market when the market is advancing, and decline more than the market when the market is declining. A "low beta" stock will decline less than the market, or advance less than the market, depending. The problem with beta is that it assumes a linear relationship, and what you describe here clearly is not. Your stock falls when the market rises a little, and rises more than the market when the market is advancing. To calculate beta, you should look at a longer term analysis of your stock and the market -- say, weekly observations over a year. Most betas are calculated using this length of data. But check formulas -- many different ones are out there. Also remember that beta is only one measure of a stock's performance. Alpha is the performance of a stock that cannot be explained by its beta and the broad market movement. And of course, all of this is a "hypothesis" of market behavior which is useful in understanding broad actions, but very weak in predicting individual stock behavior.
The expected outcome is Profit. But, the actual outcome may be different if the stock selected was poor.