What is a Weak Market?
Weak markets are an economic condition that exists when three particular factors are present. First, a weak market will have an unusually high number of sellers. In contrast, few buyers will be interested in engaging with the sellers. Last, there will appear to be a downward trend in the prices involved for the products or investments involved in the weak market. Because a weak market is created when sellers vastly outnumber buyers, this creates a situation in which the volume is sluggish and somewhat low, leaving the spread somewhat high. The downward trend that is also a characteristic of this market condition is often the result of sellers attempting to gain the attention and favor of the few buyers that may have an interest in the investment or product. As it becomes harder for the seller to generate interest, he or she will often use a lower price as an incentive to connect with a buyer and complete the transaction. In a sense, a weak market can be a positive situation for the buy
