ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Market uncertainty is when investors have difficulty assessing the current and future market conditions because there is a lot of volatility within the market. This specific paper looks at whether analysts’ incentives to be more opportunistic increases if there is a lot of volatility in the stock market.

Detailed explanation-2: -Financial markets: In uncertain situations, investors require a higher rate of return on their capital through higher risk premia. This means that the cost of credit could increase at times when perhaps the central bank decreases its policy rate, which is the usual action taken when the economy slows down.

Detailed explanation-3: -What is Business Uncertainty? In its simplest form, business uncertainty is any event that a business is unable to predict or directly influence which may lead to negative outcomes as a result. While similar, it is not to be confused with risk, as the two concepts do differ.

Detailed explanation-4: -Some of the factors which may cause uncertainty in the external business environment are inadequate needs of customers, technological changes, regulations and elimination of foreign barriers which may hinder trade.