Watching the American stock market drift further and further down brings up and interesting question: What happens if a major market indicator - for example the Dow Jones Industrial Average - drops down to zero?
Would that mean that buyers would offer to take stock for free? That owners/sellers would offer to give away stock they own for free? That the companies in the index would now be worth nothing?
We recently purchased a food stock that had dropped sufficiently low to get our attention; we had been following it for a long time and people have to eat. But why are the sellers selling? The company is still a good one. Some market pundits have suggested that sellers are panicking. The only reason I can come up with is the sellers owe money - such as a mortgage payment - and have to sell stock to pay their bills