The term refers to a period of significant discounts and promotional offers on stocks or shares, mirroring the popular retail sales event. This period often leads to increased trading volume and market volatility as investors seek to capitalize on lower prices. For example, a brokerage firm might offer reduced commission fees or a listed company might announce a special dividend during this promotional period.
Such promotional events can present opportunities for both seasoned and novice investors. Lower entry points can attract new investors into the market, while experienced traders may use the period to accumulate shares at discounted prices or adjust their existing portfolios. Historically, these events have often coincided with periods of economic downturn or market corrections, offering a potential catalyst for market recovery and stimulating investment. This can contribute to increased market liquidity and potentially drive economic growth.