answersLogoWhite

0

What was the cause of the stock market falling?

Updated: 8/17/2019
User Avatar

Wiki User

8y ago

Best Answer

Any downturn in any market is driven by selling, and upturns by buying. The emotional motivations behind these market moves are fear and greed. Fear is a more powerful motivator than greed is, and any unstable environment... including war,.fear of debt repayments, natural disasters, etc. can cascade fear into the markets in the form of selling.

Dow theory maintains that 3 primary forces are in play at all times: the primary trend that last a year or so, the corrective trend that beats against the primary trend, and the minor trend (daily) which can be ignored. When the corrective trend syncs with the primary trend, the result is a more rapid price movement.

User Avatar

Wiki User

8y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What was the cause of the stock market falling?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is stock market falling down after Obama's statement?

No. The stock market is not falling down after Obama's statement.


A type of market when there is a prolonged period of Falling Stock Prices?

Bear Market


What is stock market events of 1929 in which investors lost millions of dollars due to a stock market that kept falling?

a crash


What is the description of the stock exchange when prices are falling?

A bear market is the term used when stock market prices are going down.


What are the conditions when traders sell to make a profit on falling stock?

bear market


All of the following are causes of structural unemployment except .?

falling of the stock market


Why did the stock market rise?

cause market price is low


What is the condition of the stock market when investors are unsure about the economy and stock prices are falling?

The condition is known as a bear market. A bear market occurs when the economy is in recession or when inflation rises quickly.


What is the effect of large percentage of stock float being shorted?

Large short positions cause the price of stock to go down. A short does what she does to make money in a falling market, so if a lot of the outstanding stock in a company has been shorted, the general market will feel there's something wrong with the company.


Why does the stock market fall?

cause santa died


What was the cause of the stock market crash?

Economy prices


Do you think the nation would have experienced depression even if the stock market had not crashed?

Yes. The stock market crash did not cause the depression. Instead the economic crisis and the depression caused the stock market crash