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panic selling

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Financial Dictionary

Panic Selling

High volume selling brought about by sharp price declines.

Investopedia Commentary

The main problem with panic selling is that investors are not evaluating fundamentals. Instead, they are selling on pure emotion.

Related Links

The Madness Of Crowds
Capitulation Defined

See also: Circuit Breaker, Nervous Nellie, One-Night Stand, Panic Buying, Trading Curb, Trading Halt

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Financial Dictionary

panic selling

A flurry of selling in a particular security or in securities as a whole. Panic selling is accompanied by particularly heavy volume and sharp price declines as owners scramble to sell before prices drop even more. Panic selling is generally set off by an unexpected event viewed by traders as particularly negative. For example, uncertainty surrounding the outbreak of serious hostilities and a cutoff of oil supplies in the Middle East might be sufficient to cause panic selling.

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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