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panic buying

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Financial Dictionary

Panic Buying

High volume buying brought about by sharp price increases.

Investopedia Commentary

The main problem with panic buying is that investors are not evaluating fundamentals. Instead, they are blindly buying before prices rise even more.

See also: Circuit Breaker, Panic Selling, Trading Curb, Trading Halt

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Financial Dictionary

panic buying

A flurry of security purchases accompanied by high volume and sharp price increases. During a period of panic buying, buyers do not have time to evaluate fundamental or technical factors because their primary goal is to acquire securities before the prices rise even more. For example, panic buying occurred on the day following President Lyndon B. Johnson's announcement of his decision not to run for reelection.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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