The problem of collapse of a dust ball has been studied in detail from the point of view of an external observer (O). It is seen that although there is no material pressure from the point of view of the comoving observer, there is a non-vanishing material pressure in the ball from the point of view of O. In the early stages of collapse (w.r.t. O), this pressure is positive everywhere inside the ball, while during the later stages, if one goes outwards from the centre towards the surface of the ball, this pressure is negative up to a certain value of the radial coordinate, and then changes its sign thereafter. On the basis of this pressure, one can understand the physics of the whole scenario of collapse w.r.t. O; in particular, the important feature is that in the ultimate stages an event horizon is formed asymptotically and there is no collapse to a point (as takes place from the point of view of the comoving observer).