Capitulation

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Related to Capitulations: janissaries, Tanzimat

Capitulation

A situation in which a market gives back many or all of its previous gains. That is, prices drop significantly during a capitulation. Some investors believe that capitulation is an opportunity to buy because some securities tend to drop too much and will eventually recover nicely. However, capitulation can result in significant losses to those who already own the securities involved.
References in classic literature ?
After the smashing of the City Hall and Post-Office, the white flag had been hoisted from a tower of the old Park Row building, and thither had gone Mayor O'Hagen, urged thither indeed by the terror-stricken property owners of lower New York, to negotiate the capitulation with Von Winterfeld.
They found it still in the hands of the disgusted gunners, who had been ordered to cease fire at the capitulation, and it was easy to infect these men with their own spirit.
From above they could inflict immense damage; they could reduce any organised Government to a capitulation in the briefest space, but they could not disarm, much less could they occupy, the surrendered areas below.
Eighty years ago, on 8 May 1937, the Montreux Convention Regarding the Abolition of the Capitulations in Egypt was concluded.
I'm sure some will think me harsh in my judgment and others will say I've been too lenient, but one thing I believe there would be general agreement on is that there have been many more capitulations in 2014 than there have been in any other year in the last decade.