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.