Legal Definitions - soft market

Definition: A market (especially a stock market) characterized by falling or drifting prices and low volume.

Examples:

• During a soft market, investors may be hesitant to buy stocks because they fear further price drops.
• A soft market can also refer to a real estate market where there are more homes for sale than there are buyers, leading to lower prices.

These examples illustrate how a soft market is a market where prices are decreasing and there is low demand from buyers. This can make it difficult for sellers to make a profit and can lead to a cycle of decreasing prices.