COVID-19 Pandemic is certainly a global disaster; we believe that all our readers are safe and sound.
*Note: Kindly make sure that everyone follows the guidelines set by the government and our health officials, it is unwise to move out of our houses without a mask, lets together work on fighting against #COVID-19 pandemic.
1. Stock Market Crashed (Globally):
Most of us do not trade or invest in the stock market, but then how does just a few investors and trader impact the entire market. To understand this phenomenon better it is very important to understand the dynamics of business, and how stock markets play a very important role in helping promising organizations to expand exponentially through the financial aids attained by investors for every stock they purchase. Confused?
Watch this video: 2020 Stock Market Crash / Global Stock Index Comparison
Let me explain this to you in easy words, there are 2 major participants in a stock market that we are going to discuss now, i.e. Investor and Traders.
Traders are a type of participants in the financial market who actively engages in buying /selling of Stocks (NSE/BSE), Currencies, Commodities (MCX) etc. within a single day, it’s also called as intraday trading. They are short term investors who participate in the financial markets with short term goals based on company news updates, other interventions, growth expectations or tips by financial advisors (Not recommended) etc. They manipulate the flow of the market for a particular day, which may lead to organisations booming or dooming to a certain loss.
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Investors on the other hand have long term goals, which are here to invest in a business that they believe has 10X Growth opportunities. They do come to such conclusions based on the fundamental and technical analysis of a particular business. Now they are the ones who invest huge capital and flow the markets objectives.
Thus, many large corporations have fallen in short of capital flow, which lead to halt in many projects that were handled by small and mid-sized organizations.
2. Forceful layoff of valuable resources:
Basically, none of the ethical organizations in the world plan on laying off their workforce. The reason is not out of love, but off course they need to get their work done, and who else would do it better? But, this time the pandemic situation not only impacted the laying off of employees but also drastically impacted the hiring process too. Organizations loosing valuable resources lead to handicapping them to accept new projects and also are forced to slow down or lose their existing projects.
3. Funding? Wait for some time:
The year 2020, was a very promising year of abundant opportunities, many start-ups emerged victorious gaining potential funding from Venture Capitalists and other private investors. But since, the global pandemic of COVID19 many investors hid back in their shells updating the organisations on some additional wait period before proceeding ahead with the investments. Apart from that even Venture Capitalists and private investors are currently taking huge losses on their previous investments.
If your business has suffered from the above mentioned causes, do let us know in the comments below, if there are any other ways that your business has been impacted we are keen to hear your story.