Capitulation

(redirected from Capitulations)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
Related to Capitulations: janissaries, Tanzimat

Capitulation

A situation in which a market gives back many or all of its previous gains. That is, prices drop significantly during a capitulation. Some investors believe that capitulation is an opportunity to buy because some securities tend to drop too much and will eventually recover nicely. However, capitulation can result in significant losses to those who already own the securities involved.
References in periodicals archive ?
Capitulation as it relates to the stock market is when investors, speculators, whomever 'throw in the towel' because they are so disheartened, fearful, need to meet margin calls, or whatever.
By utilizing the efficiencies of next generation VoIP technologies with in its own network topology, ANI Networks has the flexibility to adapt to ever changing wholesale market conditions and regulatory capitulations, resulting in operational stability and economic longevity for its wholesale clients.
The calculations that determine these capitulations are rather complex and are proprietary.