Business, Legal & Accounting Glossary

Definition: Capitulation


Full Definition of Capitulation

The sale of a security at a loss for the specific purpose of moving funds from the sale into a less risky investment. Capitulation refers to investors “giving up” on a particular security. Value investors often review such sales of securities, since the value of the underlying security could be inherently higher than what the share price currently is. Technical traders might view the low price as a potential bottom of a cycle.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Capitulation. Payroll & Accounting Heaven Ltd. November 28, 2021
Chicago Manual of Style (CMS):
Capitulation. Payroll & Accounting Heaven Ltd. (accessed: November 28, 2021).
American Psychological Association (APA):
Capitulation. Retrieved November 28, 2021, from website:

Definition Sources

Definitions for Capitulation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.