Why Does the Stock Market Crash? | Stocks 101 Explained, with Brian Feroldi
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What Happens to Stock Prices Over Long Periods?
In the short term, emotions drive the market. But in the long term, the market is a weighing machine - it weighs what companies are worth. If investors as a group suddenly turn barish or fearful about the stock and stock prices, they can sell off those stocks which causes the price to go down. And when prices are going down, that fills a lot of investors with fear that the prices ar ging to continue going down.
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