Legal Definitions - receding market

A receding market is a type of bear market where prices of securities or commodities fall over a prolonged period. This means that there is a decrease in demand for these goods or services, resulting in lower prices.

For example, during the 2008 financial crisis, the housing market in the United States experienced a receding market. The demand for houses decreased, causing the prices to fall. This led to a decrease in the value of mortgage-backed securities, which caused a ripple effect throughout the financial system.

Another example of a receding market is the decline in demand for coal due to the shift towards renewable energy sources. As a result, the prices of coal have been falling, causing a decline in the coal industry.

These examples illustrate how a receding market can have a significant impact on the economy and the financial system.