Downward spurt (slump)

The unexpected and rapid selling pressure on a stock on the stock exchange. Experience shows that this is primarily caused by a loss announcement by the company concerned. – The sudden sharp drop in prices on the stock exchange (plunging stock prices). As financial history teaches, such a stock exchange crash is either – triggered by an unexpected result, such as a catastrophic natural event, a war or an event such as the Islamist attack on the World Trade Center in Neuyork on September 11, 2001, or – it occurs after a prolonged smoldering (smoulder) with initially still irregular collapses in share prices, followed by a creeping disintegration that leads to a crash as confidence in the financial markets is progressively lost, as in the wake of the subprime crisis. In this case, after five quarters since the outbreak of the subprime crisis in the summer of 2007, the governments of many countries have had to intervene through guarantee funds and rescue packages in order to avoid the complete collapse of the financial system. – See selling panic, downturn, buying up, central bank, bear market, federal securities, dividend funds, euphoria phase, financial crisis, headline hysteria, herd behavior, price maintenance, price jump, market maintenance, massive selling, milkmaid bull market, giving in, panic selling, shock, external, sell out, mock price.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/