Explain, using examples, why short-termism is considered a market failure.

Short-termism:

Holding asset for short period which can be 1 year or less than that Excessive focus for a short period Less concentrated on creation of values for long-term Short-termism are too much costly and thus can lead to market failure It can even decline the economy of a country Creates more pressure on the investors Many are against short-termism with which we cannot achieve organizational goal and sustained gains.

Rather long-term focus on "long-term gains".