Shakeout

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Shakeout

A dramatic change in market conditions that forces speculators to sell their positions, often at a loss.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Shakeout

A consolidation of the number of companies in an industry. Shakeouts occur because of stiff competition and the ability of some companies to offer a better product at a lower price than other companies. Shakeouts are generally considered a normal part of an industry life cycle.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

shakeout

A reduction in the number of firms that operate in a particular industry. An example of a shakeout is the decline in the number of commercial banks in the United States. Shakeouts often occur after an industry has experienced a period of rapid growth in demand followed by overexpansion by manufacturers. Large, diversified companies able to survive a weak business climate tend to benefit from shakeouts.
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.
References in periodicals archive ?
It is probable that the variability of productivity growth was caused, in part, by overexpansion and "shake-outs."
This could very well turn out to be another of those shake-outs in a bull market where good nerves and a dash of over-confidence pay-off.
Landlords must wait on the sidelines, but any shake-outs can create new opportunities.
The group is one of the few remaining technology stocks in the Footsie, following shake-outs which have seen former stock market darlings such as Marconi, Energis and Autonomy relegated.
While shake-outs like the recent one that knocked the FTSE-100 down to 1998 levels cause a lot of alarm, the lucky ones who qualify for share options could find their finances dramatically improved, said Yvonne Redfern, director of tax at law firm Martineau Johnson.
Markets on both sides of the Atlantic have experienced severe shake-outs since early March and former wonder stocks such as investment group Durlacher have turned into dogs.