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Recession And How It Impacts On Stock Markets

 A recession is a period of economic decline, marked by a significant drop in GDP (gross domestic product), a rise in unemployment rates, and a general contraction in economic activity. Recession can have a significant impact on the stock markets and can lead to a decline in stock prices. Understanding how a recession impacts the stock market can be crucial for investors to make informed decisions. When a recession hits, companies tend to experience a decline in sales, profits, and revenue. This causes investors to become wary, leading to a sell-off of stocks, which ultimately lowers the stock prices. The reduced demand for goods and services can also impact the supply chains of companies, causing supply chain disruptions and delays.  Companies with high levels of debt may find it challenging to continue to operate, leading to a bankruptcy. One of the most significant impacts of a recession on the stock market is the reduced consumer spending. When people are uncertain about t...