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LSDefine
Simple English definitions for legal terms
down reversal
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A quick definition of down reversal:
A down reversal is when the price of something suddenly goes down after it was going up for a while. This usually happens at the beginning of the price drop, and if it keeps going down for a long time, it's called a bear market. Another word for down reversal is correction or market correction.
A more thorough explanation:
Definition: A down reversal is a sudden decline in market prices after a period of rising trends. This term is used to describe the early stage of the decline. If the decline continues for several months, it is called a bear market. It is also known as a correction or market correction.
- After a long period of growth, the stock market experienced a down reversal, with prices dropping rapidly.
- The housing market saw a down reversal after years of steady growth, with home prices falling sharply.
These examples illustrate how a down reversal can occur in different markets, such as the stock market and housing market. In both cases, there was a period of growth followed by a sudden decline in prices. This can be caused by various factors, such as changes in economic conditions or investor sentiment.