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Explain, using examples, why short-termism is considered a market failure.

User Cavel
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Step-by-step explanation:

Short-termism:

  • Holding asset for short period which can be 1 year or less than that
  • Excessive focus for a short period
  • Less concentrated on creation of values for long-term
  • Short-termism are too much costly and thus can lead to market failure
  • It can even decline the economy of a country
  • Creates more pressure on the investors
  • Many are against short-termism with which we cannot achieve organizational goal and sustained gains.

Rather long-term focus on "long-term gains".

User Moti Bartov
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