Investor Glossary-recessionInvestor Glossary-recessionInvestor Glossary-recessionInvestor Glossary-recessionInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


The HTML to link to this page

As a rule of thumb, a recession is the fall of a nation's gross domestic product (GDP) over two or more consecutive quarters. A recession is also referred to as a period of economic decline and reduced economic activity. Factors that may cause a recession include overproduction, decreased demand, falling consumer and business confidence and major economic imbalances, among others. During a recession, the level of unemployment rises, investments decline, and prosperity lags. Real personal income and spending growth also have a tendency to slow if not decline during a recession. A recession can involve rapidly falling (deflation) or sharply rising prices (inflation). The average recession from 1945 to 2005 lasted about ten months but two went on for a record 16 months. The National Bureau of Economic Research is the official arbiter of what is and what is not a recession. A recession in one country can cause a recession to occur in others, specifically trading nations. A recession can be widespread and affect the entire economy or a recession can be industry-specific.

Rate this recession definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: APR, required rate of return, in escrow, per diem, stock split, cancelled check, labor relations, liquidity ratio, inflation, 401a, limit order, risk management, Key Rate Duration, retained earnings, FICO score, quality assurance, 144a, real GDP, command economy, dividends payable, deferred revenue, class C shares, stock market close, deferred tax, balance sheet, reverse mortgage, phantom income, ex-dividend, option premium, LIBOR, annual return, debt service coverage, open position, 1035 exchange, current ratio, EBITDA, implied volatility, average price per share, wholly-owned subsidiary, Zero Cost Collar, irrevocable trust, ex-dividend date, FTSE, diluted share, covered put, minority interest, VIX, 1031 exchange, margin rate

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use