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What Should Investors Do When The Stock Market Crashes?
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[QUOTE="Alexandoy, post: 214325, member: 25510"] The crash in the stock market is very similar to a bank run. When there is a spate of big withdrawals and the public would learn about it then there would be a bank run - the continuous withdrawal of deposited money due to fear of bankruptcy. Usually the central bank or other banks would lend money to the victim bank to appease the clients. When the bank has no money then the issue will be blown up. Having cash in front will greatly help to dissipate the issue of a bank run. In stocks, when there is an impending crash investors tend to sell their holdings. However, rumors in stock exchange fly so fast that holders would instantly sell while the price is still manageable. But when the price gets very low then the sellers would stop selling. In my case, I had my stocks at 128 per share. If there will be a crash at 100 per share I would probably not sell because my stocks is of the biggest bank here and I believe that it can easily rebound to the normal price. [/QUOTE]
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What Should Investors Do When The Stock Market Crashes?
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