Shares/Stock How Does Strike In A Country Affect The Stock Market?

Good-Guy

VIP Contributor
The stock exchange and the stock market in a country relies a lot on the law and order conditions in a country. There are many countries where many people go on a strike and this also includes people who are political activities. When the strike occurs in any kind of country, the business suffers. I believe that strike directly affects the stock market or it at least affects the stock market in an indirect manner as well. Strike affects the public transport as well and this means that people may not be able to travel across the city in order to buy or purchase products.

This also has a really huge negative effect on the stock market as well. Sometimes, the shops also get closed when a political party declares a nationwide strike. When the shops and markets are closed, this has a really huge effect on the sale and purchase of many different kinds of commodity. These kind of strikes also affect the economy of a country in a really bad manner. Frequent strikes could never allow the people of the country to make money and this may also decrease their buying power as well. So, how does strikes affect the stock market?
 

Suba

Moderator
Staff member
I have never heard of or seen a major strike within a country, a strike that often occurs only in one company, so it doesn't affect globally or affect the capital market. Of course, if a strike occurs in a company that issues shares (issuers) due to unpaid wages, then the shares of that company will be destroyed in value.
 

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