Depression

Depression in the financial sense can lead to depression in the medical sense, but of course they are distinct terms.

In the world of finance it is a technical term for a state of affairs where prices fall and people and companies generally do not have much power to make purchases, despite this fact.

There will also usually be an accompanying increase in unemployment so thte while financial situation can seem quite depressing!

Related Articles

Defeasance
Corporation
Early withdrawal penalty
Going long
Market maker

More Financial Words and Vocabulary Explained