Panic Selling

Business, Legal & Accounting Glossary

Definition: Panic Selling


Panic Selling


Full Definition of Panic Selling


A rapid increase in sales orders for a particular investment, which pushes down its stock price. This can cause a spiraling effect or “vicious cycle” in which investors see a rapidly decreasing price as a sign to get out of a particular investment, which further depresses the price and prompts more investors to sell their shares. This type of selling is often prompted by a fear of loss rather than an understanding of the issue at hand. A stock exchange may employ a circuit breaker strategy in order to halt panic selling.


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Definition Sources


Definitions for Panic Selling 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: 16th November, 2021 | 0 Views.