Generated on 2014/06/19 at 04:58:34 AM


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Risk Item: Market Run



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Description (HTML) Also known as a run on the market, a market run is a situation in which consumers choose to increase their purchasing of certain goods and services due to some perceived threat that the supply of those products will shortly be diminished.

The same general concept of a market run can also occur when consumers perceive that an adverse shift in the economy is about to occur or has already occurred. One of the best examples is the bank run. In this particular type of market run, consumers begin to withdraw resources from various types of bank accounts and hoard the cash at home. The idea is that if the banks should fail, at least the cash would be available to continue making essential purchases until the crisis is abated. The outcome of a bank run is that the impending financial crisis is usually hastened as a result of that run, possibly making the situation worse than it would have been otherwise.

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Source URL http://www.wisegeek.com/what-is-a-market-run.htm
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Updated by webea.09
Updated on 2014-04-11 15:45:17
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Market Risk, FinancialRisk Market Risk, Financial