selling panic

Selling Panic

The rapid selling of a security by a large number of investors. This increases the supply of the security available for sale while leaving constant or decreasing the demand to buy; this drives down the price. Selling panics occur for a number of reasons. For example, a stock may drop suddenly in price if its company issues an unexpectedly negative earnings report. The panic comes from investors' desire to sell the stock immediately before the price falls even more. See also: Buying panic, Sell-off.

selling panic

A period of rapidly falling stock prices on very large volume as investors, speculators, traders, and institutions attempt to liquidate investment positions without regard to price. Selling panics occur when individuals and institutions believe they must sell securities at once before prices fall further. Compare buying panic.
References in periodicals archive ?
7% - its worst slump in over two years - as investors spooked by fears of another global meltdown sparked a selling panic.
Anyone who says we have not had the equivalent of a crash or an investor selling panic is simply not looking at the numbers.
The government halved the downward limit last month to prevent a selling panic after the opposition parties threatened to recall President Chen Shui-bian over his government's decision to scrap a controversial nuclear plant.
In this scenario, the brave hearts could succumb to the pressure and belatedly join and exacerbate the selling panic.
Traders get nervous when a price levitates, and the smallest item of bad news then can prompt a selling panic.
On Monday, the first day of trading since Chen Shui-bian of the opposition Democratic Progressive Party won the presidential election, the local bourse had seen a selling panic which brought the index down 2.