selling panic

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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 ?
Over the past few years, the individual investor on Main Street has learned that selling panics by traders on Wall Street are great buying opportunities,'' said Edward Yardeni, chief economist at Deutsche Morgan Grenfell Inc.
In this scenario, the brave hearts could succumb to the pressure and belatedly join and exacerbate the selling panic.