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Reasons Why You Might Make a Loss on Stock Market
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[QUOTE="Mika, post: 267885, member: 29399"] 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. [/QUOTE]
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