The rapid
sale of a
security by a large number of
holders. This increases the
supply of the security available for sale and therefore drives down the
price. Sell-offs occur for a number of reasons. A
stock may drop suddenly in price if its company issues a negative
earnings report, or if there are reports of a new technology rendering the company's product obsolete, or if the company's
costs rise. Sell-offs also happen for other, perhaps less rational reasons. For example, a natural disaster, which may or may not affect supplies, can cause a sell-off. See also:
Panic Sale.