answersLogoWhite

0


Best Answer

The Market moves by the Demand & Supply concept. When there is more demand for shares their prices go up. When there is an excess supply of shares the prices go down.

When would an excess supply of shares happen?

When everyone is trying to sell their shares

Why would everyone want to sell their shares?

1. When they are afraid what would happen to the companies they hold

2. When they are short of cash and want to raise some cash to meet their requirements

Because of the economic crisis both the above mentioned reasons became true. People were heavily concerned about the future of the companies they hold shares and also they were running short of cash. So people started selling their holdings in thousands.

This is the reason for the Market slump...

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the main reason of slump in market and why?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is it wise to buy investment properties now that there is a housing slump in the market?

Even with the slump in the housing market, purchasing investment properties can still be a wise long term investment. Of course, as always the location is the key factor and the price. Due to the slump and the economy, there are lots of good deals out there for investers.


What was the severe economic slump that followed the collapse of the stock market in 1929?

The Great Depression


Can I get a simple sentence using secular?

Kelly is secular in her beliefs. The current market slump is not cyclical but secular.


What was the main reason why a Common Market was not set up?

Singapore was seen as a rival to Malaysia's industries.


What are true slump and shear slump in slump test?

A shear breaks off or crumbles. A slump stays together however it will slump down.


What is slump?

Slump is to slouch or collapse. For example, you could slump into a chair.


Type of slump test?

Type of slump test are,True slumpShear slumpCollapse slump


What is a sentence for slump?

Don't slump, you'll injure your spine.There was a big slump in sales.


What are the slump types which can be occurred in concrete?

ture slump


What does slump mean?

to slump or go to asleep instantly


Why has market wood pulp capacity been stagnant?

The main reason for this stagnant market is that U.S. paper mills are using more recycled fiber than ever before


When a rock suddenly falls of a cliff is it a slump or creep?

slump