Legal Definitions - downside trend

Definition: A downside trend refers to a period in the stock market cycle where there is a consistent decline in stock prices.

Example: During a downside trend, investors may experience losses in their stock portfolio as the value of their stocks decreases over time.

This term is important for investors to understand as it can help them make informed decisions about buying or selling stocks. By recognizing a downside trend, investors may choose to sell their stocks before they lose too much value or avoid buying stocks until the market begins to recover.