Shakeout

AAA

DEFINITION of 'Shakeout'

A situation in which many investors exit their positions, often at a loss, because of uncertainty or recent bad news circulating around a particular security or industry.

INVESTOPEDIA EXPLAINS 'Shakeout'

During the dotcom boom and bust, numerous shakeouts occurred. During these shakeouts many investors experienced tremendous losses.

RELATED TERMS
  1. Capitulation

    When investors give up any previous gains in stock price by selling ...
  2. Correction

    A reverse movement, usually negative, of at least 10% in a stock, ...
  3. Falling Knife

    A slang phrase for a security or industry in which the current ...
  4. Bear Market

    A market condition in which the prices of securities are falling, ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier ...
  6. Panic Selling

    Wide-scale selling of an investment, causing a sharp decline ...
Related Articles
  1. Connecting Crashes, Corrections And ...
    Active Trading

    Connecting Crashes, Corrections And ...

  2. The Greatest Market Crashes
    Budgeting

    The Greatest Market Crashes

  3. What Does The Dow Jones Industrial Average ...
    Investing Basics

    What Does The Dow Jones Industrial Average ...

  4. What are the differences between dilutive ...
    Investing

    What are the differences between dilutive ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center