panic buying


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Panic Buying

A situation in which many investors buy a security on high volume, leading to a rapid rise in price. Panic buying usually occurs when investors believe that a security or market is already rising and they wish to buy it before the price rises even more. Panic buying may or may not be the result of an overreaction. Rules on many stock markets limit the amount by which a security can rise in a single session to reduce the pressure for panic buying. See also: Panic selling.

panic buying

A flurry of security purchases accompanied by high volume and sharp price increases. During a period of panic buying, buyers do not have time to evaluate fundamental or technical factors because their primary goal is to acquire securities before the prices rise even more. For example, panic buying occurred on the day following President Lyndon B. Johnson's announcement of his decision not to run for reelection.
References in periodicals archive ?
Greeks are resorting to panic buying because of the fear that they might lose their savings.
Fuel sales, which account for some 10% of retail business, are expected to suffer in April as the panic buying brought sales forward.
Some motorists already had plenty of petrol after panic buying last month, while some garages were out of stock, said the RMI.
PETROL stations were hit by panic buying and many ran out of fuel after Cabinet Office Minister Francis Maude told people to "fill up jerry cans" in case of a strike by tanker drivers.
Meanwhile, the AA said the scenes of panic buying were "calming down" yesterday, just 24 hours after an estimated fifth of UK garages ran out of fuel.
Fiona Davidson, who works at Roseberry filling station on Acklam Road, Middlesbrough, said: "People are definitely panic buying.
5 tonnes of salt, hoping to profit from panic buying spurred by fears of radiation from Japan, is now stuck with the $4,000 worth of the condiment, state media reported on Friday.
Supermarkets in many Chinese cities have run out of salt as a wave of panic buying spread from east China's Zhejiang Province Thursday afternoon to Guangdong, Jiangxi, Guizhou, Sichuan, Jiangsu and Hubei provinces as well as the municipalities of Beijing and Chongqing,'' the official Xinhua News Agency reported.
Supermarkets in many Chinese cities have run out of salt as a wave of panic buying spread among people after they heard rumors saying radiation had leaked into the sea from the Japan's nuclear plant, which will make salt taken from the sea in the future unsafe.
These rumors have caused  salt panic buying in some Chinese cities, such as Guangzhou, Nanjing, and Ningbo.
This is only the start of the panic buying," said Ker Chung Yang, commodities analyst at Singapore-based Phillip Futures, referring to Bangladesh's recent tripling of its rice import target and Indonesia's purchase this week of 820,000 tonnes of Thai rice, nearly five times the volume initially sought.
Workers demanding better pay triggered panic buying and shortages of crude oil output.