ANSWERS: 1
  • Pessimism, bad news and herd mentality cause markets to fall during a trading day. Just hearing that the markets in Asia fell can cause a sell off in the US. Bad company earnings, or those that don't meet expectations can cause selling. When more people want to capture whatever they have gained and get out of the risk of their stock going lower, they sell. When there are more sellers than buyers the stock plummets. Often the whole market does this at the same time.

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