Often confused , a economic downturn and a equity plunge are distinct phenomena. A recession typically refers to a substantial decline in broad economic output , defined by factors like falling incomes, increasing unemployment, and reduced consumer spending . Conversely, a stock market crash represents a sharp but dramatic plunge in stock prices .

Many people confuse a recession and a market collapse , but they are distinct phenomena. A economic downturn is a significant decline in overall business that typically extends for several quarters . It’s often characterized by falling retail sales , business investment , and employment . Conversely, a stock market crash refers to a sharp fall in