Shakeout

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Shakeout

A dramatic change in market conditions that forces speculators to sell their positions, often at a loss.

Shakeout

A consolidation of the number of companies in an industry. Shakeouts occur because of stiff competition and the ability of some companies to offer a better product at a lower price than other companies. Shakeouts are generally considered a normal part of an industry life cycle.

shakeout

A reduction in the number of firms that operate in a particular industry. An example of a shakeout is the decline in the number of commercial banks in the United States. Shakeouts often occur after an industry has experienced a period of rapid growth in demand followed by overexpansion by manufacturers. Large, diversified companies able to survive a weak business climate tend to benefit from shakeouts.
References in periodicals archive ?
Derrin Smith, "Our senior team, both here and at GETGO Asia, have labored to maintain GETGO's business operations during one of the most challenging business shake-outs in the history of the technology markets.
While shake-outs like the recent one that knocked the FTSE-100 down to 1998 levels cause a lot of alarm, the lucky ones who qualify for share options could find their finances dramatically improved, said Yvonne Redfern, director of tax at law firm Martineau Johnson.
com shake-outs, it's imperative to find solutions with staying power," says Cintara's Founder and President, Lisa Tollner.
Markets on both sides of the Atlantic have experienced severe shake-outs since early March and former wonder stocks such as investment group Durlacher have turned into dogs.
TXI's cement and steel operations experienced market shake-outs in the late eighties and early nineties that resulted in poor shareholder returns.