2006-07-11 18:15:03 · 5 answers · asked by harshad 2 in Business & Finance ➔ Investing
There is something called 'Flight to safety' its a theoretical explanation which states that under uncertainty conditions, a rational man would seek safety than risk. So when such things such as bomb blast, natural disasters, etc happen, one can witness knee-jerk reactions purely kicked in by nervous traders.
however today in India, the BSE did not react and is going strong despite the previous day blasts!
2006-07-11 23:17:54 · answer #1 · answered by The Guru® 5 · 5⤊ 0⤋
yeah man.. I tell u in brief..
when a Bomb blast or terrrorist attack happens in a country.. that countries economy will derail.. Foreing investor will pull back (Sell) their investments from the country.. When the Economy is doing bad, the Monetary value of the country will also get weaker.. Each and every stock goes up and down depending on the performance of the respective company.. Economy plays a major role in it.. These are the few - brief causes for it..
People will fear to buy in a weaker market..
2006-07-12 01:21:57 · answer #2 · answered by Jin 4 · 0⤊ 0⤋
Affects temporarily, after a day or its normal.
2006-07-12 01:31:52 · answer #3 · answered by smarty 2 · 0⤊ 0⤋
well go into a business/stock advise chat room then you could ask yourself.
try it
2006-07-12 02:40:26 · answer #4 · answered by onelazyhori 3 · 0⤊ 0⤋
There won't be buyer's a hence the market will crash
2006-07-12 01:18:21 · answer #5 · answered by king 4 · 0⤊ 0⤋