How Could the Rumor of a Bank Failure Actually Turn

question 138

Essay

How could the rumor of a bank failure actually turn into a bank failing? Is the bank really without assets?

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Definitions:

Management

The process of dealing with or controlling things or people, often in the context of running a business, organization, or project.

Secondary Market

A market where investors purchase securities or assets from other investors, rather than from issuing companies directly.

Original Issuance

The first time that securities, such as stocks or bonds, are offered for sale to the public or private investors.

Securities

Financial instruments that represent ownership positions in corporations, creditor relationships with corporations or governmental bodies, or rights to ownership as represented by an option.