Question

The newspaper's headline reads that "everyone is selling, but no one wants to buy" after the...

The newspaper's headline reads that "everyone is selling, but no one wants to buy" after the stock market falls. What is wrong with this interpretation?

Homework Answers

Answer #1

After the stock market falls, the situation arises where the price of all the shares falls and hence there occurs two situations which are-

- nobody wants to sell as the prices are extremely low and hence there would be no profits

- and there are many who are ready to buy because they'll get the shares at lower prices and will sell them when the speculative prices would rise earning great profits.  

Hence the statement is written in the opposite terms.

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