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Simple English definitions for legal terms
downside
Read a random definition: collateral limitation
A quick definition of downside:
Term: DOWNSIDE
Definition: When the value of stocks goes down, it is called a downside. It means that people who own those stocks may lose money. The downside can also refer to the possibility that the value of stocks may go down in the future.
Compare: UPSIDE refers to the opposite - when the value of stocks goes up.
A more thorough explanation:
Definition: A term used in securities to describe a downward movement in stock prices or the potential for such a movement. It is the opposite of upside.
Example: If a company's earnings report is worse than expected, it could lead to a downside in the stock price.
Explanation: The example illustrates how a negative event, such as a poor earnings report, can cause a downside in the stock price. This can result in investors losing money if they have invested in the stock. The term downside is used to describe this negative movement in the stock price.