Depressed

AAA

DEFINITION of 'Depressed'

A state or condition of a market, product or security characterized by slumping prices, low volumes, and lack of buyers. "Depressed" usually refers to a prolonged period of low prices and activity. The term may also be used in the context of the broad economy, in which case it generally refers to recessionary conditions.

INVESTOPEDIA EXPLAINS 'Depressed'

A period of depressed prices for a market or security usually occurs after prices have run up, peaked and subsequently declined for a prolonged period. Prices may remain in a depressed state for months, if not years, depending on the extent to which they had rallied beforehand and the amount of over-capacity or excess supply.

As an example, the U.S. housing market was in a depressed state for a number of years from 2008 onwards, as excessive real estate speculation led to a housing bubble in the preceding years. When the bubble burst, millions of homeowners were forced into foreclosure, creating an excess supply of homes that lasted for years.

RELATED TERMS
  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  3. Depression

    A severe and prolonged downturn in economic activity. In economics, ...
  4. Economic Cycle

    The natural fluctuation of the economy between periods of expansion ...
  5. Market Sentiment

    The overall attitude of investors toward a particular security ...
  6. Nordic Model

    The social welfare and economic systems adopted by Nordic countries.
Related Articles
  1. Fundamental Analysis

    How Influential Economists Changed Our History

    Find out how these five groundbreaking thinkers laid our financial foundations.
  2. Fundamental Analysis

    Where's The Market Headed Now?

    Whether up, down or sideways, learn about some of the factors that drive stock market moves.
  3. Credit & Loans

    The Lost Depression

    Many people don't know that a severe depression hit a decade before the Great Depression, and it didn't make it into most history books.
  4. Active Trading Fundamentals

    Recession: What Does It Mean To Investors?

    Understanding the business cycle and your own investment style can help you cope with an economic decline.
  5. Mutual Funds & ETFs

    Survival Tips For A Stormy Market

    Learn which stocks to watch and which to avoid when the Dow starts to sink.
  6. Economics

    What Caused The Great Depression?

    Learn how government actions may have contributed to this major economic downturn.
  7. Options & Futures

    Market Bottom: Are We There Yet?

    No one rings a bell when the bear market's over, but that doesn't mean there's no way to predict a bottom.
  8. Economics

    What's The Impact On Equities If The Rates Hike?

    The Fed is on course for raising interest rates. True, that leaves the question of when (most likely June or September, but could be later) and how much.
  9. Bonds & Fixed Income

    Why Didn't Quantitative Easing Lead To Hyperinflation?

    Hyperinflation is an exponential rise in prices and tends to occur not when countries print too much money, but is instead associated with a collapse in the real underlying economy.
  10. Investing

    What Has Been Groupon’s Growth Strategy?

    Groupon established a strategy with efforts to become a broader force in the e-commerce world and to expand more strongly into international markets.

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center