Question

What is a stock market recession?

Answer 1

Explanation:

As workers are laid off, they spend less. A drop in demand means less revenue. That means more layoffs. As the decline continues, the economy contracts, creating a recession. In the past, stock market crashes preceded the Great Depression, the 2001 recession, and the Great Recession of 2008.

Answer 2

A recessionary impact in the financial stock market is often reflected by the general fall in the stock market.

Explanation:

• In general,a recessionary indications are embedded in the fluctuations of various stock or share prices.
• If multiple or considerable number of stock values or prices fall in the market,it implies low financial or economic profitability of the respective companies to which the falling stocks usually belong to.
• A consistent decline or fall in the stock values or prices may imply lower consumer demand for goods and services or lower consumer confidence,under-employment or utilization of the productive resource or factors/inputs of production used by companies or firms in production process,impending bankruptcy of many of the firms or companies,rising unemployment due to possible worker or employee lay offs,lower production level of goods and services in the economy and so on.