«Investors often want to dump
shares during a stock market crash because they want to cut their losses and because they fear even greater declines,» said Kelly Shue, a professor of finance at the Yale School of Management.
Not exact matches
That's why
during a recession, you want a lot of cash, cash equivalents, or access to money in some way at your disposal in the event that you lose your job, the
stock market crashes and you don't want to sell your
shares at depressed prices, you suffer a pay cut of some sort, are disabled, or you own a business and sales start to drop.
So although panic selling can disrupt the order book, especially
during periods of illiquidity, with the current structure «the
stock market» being based off of three composite indexes, can never
crash, because there will always exist a company that is not exposed to broad
market fluctuations and will be performing better by fundamentals and
share price.