Question

When there are events that are unfavorable to economic growth (such as a global recession) in the news, what usually happens to stock prices? A. Stock prices in all industries go up B. Stock prices in all industries go down C. Stock prices go up in some industries and down in other industries D. Not enough information

Answer 1

B. Stock prices in all industries go down

Step-by-step explanation:

When there are unfavorable conditions like recession, when such events are being broadcast by the media houses, it brings certain feeling of fear within the mind of stockholders usually drag the price of stacks down. They get into selling off their shares which is responsible for the fall of the prices of the stocks.