sell-off

Sell-Off

The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the value of the security.

Notes:

A sell-off may occur for many reasons. For example, if a company issues a disappointing earnings report, it can spark a sell-off of that company's stock. Sell-offs also can occur more broadly. For example, when oil prices surge, this often sparks a sell-off in the broad market (say, the S&P 500) due to increased fear about the energy costs companies will face.

See also: Demand, Equilibrium, Herd Instinct, Overbought, Oversold, Rally, Security, Supply

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sell-off

A general decline in security prices. This term generally refers to a short- or intermediate-term decline rather than to an extended period of falling prices.