DEFINITION of 'Selloff'

The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the value of the security.


A sell-off may occur for many reasons. For example, if a company issues a disappointing earnings report, it can spark a sell-off of that company's stock. Sell-offs also can occur more broadly. For example, when oil prices surge, this often sparks a sell-off in the broad market (say, the S&P 500) due to increased fear about the energy costs companies will face.

  1. Supply

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  2. Security

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  3. Herd Instinct

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  4. Oversold

    1. A condition in which the price of an underlying asset has ...
  5. Overbought

    1. A situation in which the demand for a certain asset unjustifiably ...
  6. Rally

    A period of sustained increases in the prices of stocks, bonds ...
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