Default occurs when a debtor is unable to meet the legal obligation of debt repayment. Typically, default is considered a last resort for debtors and can result in legal action including asset repossession or additional charges. In the financial markets, defaults can influence credit ratings for borrowers and are often taken as serious indicators of financial health.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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