The rapid
buying of a
security by a large number of
investors. This decreases the
supply of the security available for
sale and therefore drives up the
price. Buying panics occur for a number of reasons. For example, a stock may rise suddenly in price if its company issues an unexpectedly positive
earnings report. The panic comes from investors' desire to buy into the
stock immediately before the price rises even more. See also:
Panic sale,
Sell-off.