Mika
VIP Contributor
There are numerous reasons why you might make a loss in the stock market. Here are some common reasons:
Recession: When there is a recession, stock prices begin to fall because businesses start making losses, or earning less profit.
Inflation: When there is inflation, prices of raw materials increase, and interest on loans increases, which increases the production cost, which will increase running costs, thus businesses will not make s much money as they used to. Therefore, the stock market will fall.
Market manipulation: You might have heard of the term whales. These are people who buy a lot of stocks, and then start selling all of sudden. When they buy stocks, the price begins to improve and then they sell, take profits, and move on.
Panic selling: Panic selling means investors start selling stocks when they suspect the market is going to crash. This will even further decrease the stock price, and the investors will make a loss in the stock market.
Recession: When there is a recession, stock prices begin to fall because businesses start making losses, or earning less profit.
Inflation: When there is inflation, prices of raw materials increase, and interest on loans increases, which increases the production cost, which will increase running costs, thus businesses will not make s much money as they used to. Therefore, the stock market will fall.
Market manipulation: You might have heard of the term whales. These are people who buy a lot of stocks, and then start selling all of sudden. When they buy stocks, the price begins to improve and then they sell, take profits, and move on.
Panic selling: Panic selling means investors start selling stocks when they suspect the market is going to crash. This will even further decrease the stock price, and the investors will make a loss in the stock market.