Shakeout

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Shakeout

A dramatic change in market conditions that forces speculators to sell their positions, often at a loss.

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.

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.
References in periodicals archive ?
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.
Derrin Smith, "Our senior team, both here and at GETGO Asia, have labored to maintain GETGO's business operations during one of the most challenging business shake-outs in the history of the technology markets.
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.
com shake-outs, it's imperative to find solutions with staying power," says Cintara's Founder and President, Lisa Tollner.
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.