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The rapid buying of a security by a large number of investors. This decreases the supply of the security available for sale and therefore drives up the price. Buying panics occur for a number of reasons. For example, a stock may rise suddenly in price if its company issues an unexpectedly positive earnings report. The panic comes from investors' desire to buy into the stock immediately before the price rises even more. See also: Panic sale, Sell-off.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A period of rapidly rising stock prices on very high volume as investors, speculators, traders, and institutions attempt to establish investment positions without regard to price. Buying panics occur when individuals and institutions believe they must buy securities at once before prices rise further. Compare selling panic.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.