Faculties and Departments > Business Administration

Panic selling

(1/1)

munna99185:
Panic selling is wide-scale selling of an investment, causing a sharp decline in price. In most instances of panic selling, investors just want to get out of the investment, with little regard for the price at which they sell. The main problem with panic selling is that investors are selling in reaction to pure emotion and fear, rather than evaluating fundamentals. Almost every market crash is a result of panic selling. Most major stock exchanges use trading curbs and halts to limit panic selling, to allow people to digest any information on why the selling is occurring, and to restore some degree of normalcy to the market.
[Source: http://www.investopedia.com/terms/p/panicselling.asp]


Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University

sajib:
Panic selling is the sudden and widespread selling of a security.

How it works/Example:

Panic selling may occur after a sudden, sharp decline in the price of a security.  Panic selling does not involve an evaluation of the fundamentals of a stock or market conditions.  Rather, it is usually the result of an emotional reaction and fear, causing sellers to want to get out of an investment without regard to the price or cost.

http://www.investinganswers.com/financial-dictionary/stock-market/panic-selling-612

Navigation

[0] Message Index