Watching the American stock market drift further and further down brings up and interesting question: What happens if a major market indicator - for example the Dow Jones Industrial Average - drops down to zero?
Would that mean that buyers would offer to take stock for free? That owners/sellers would offer to give away stock they own for free? That the companies in the index would now be worth nothing?
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We recently purchased a food stock that had dropped sufficiently low to get our attention; we had been following it for a long time and people have to eat. But why are the sellers selling? The company is still a good one. Some market pundits have suggested that sellers are panicking. The only reason I can come up with is the sellers owe money - such as a mortgage payment - and have to sell stock to pay their bills
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1 comment:
I've wondered about that, too. I If we had a big enough disaster I suppose it could drop to a big fat 0.
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