Dave Manuel Logo
Tuesday, October 21, 2014
Click Here to Subscribe to My Free Newsletter

DaveManuel.com BLOG POSTS
FRONT PAGE
ABOUT
SEARCH
CONTACT ME
SPECIAL FEATURES
INTERNATIONAL
ARTICLE ARCHIVE
BLOG POSTS
DICTIONARY
POLITICIANS
POL. NET WORTH
OTHER NET WORTH
U.S. DEBT CLOCK
NEWSLETTERS
DEALS
U.S. UNEMPLOYMENT
INFOGRAPHICS
NEWSLETTER
ADVERTISE
ARTICLE FEED
BLOG FEED



Definition of Capitulation







What is the definition of "capitulation" or "capitulation selling"?

How does this meaning apply to the stock market?

I don't need to tell you that the last few years have not been very kind to the stock market.

Sell-offs. Missed earnings. Bailouts. The list goes on and on.

-- finance term - capitulation selling --During the last few years, you have probably heard the term "capitulation" being used often.

The dictionary defines capitulation as "the act of surrendering or giving up".

Capitulation, as it applies to the stock market, is no different.

Capitulation selling comes about when investors simply give up.

They want out of the market, and they want out NOW.

This may be a personal choice (for instance, they just don't want to be invested in the markets anymore) or this may be due to forced selling.

Whatever the reason, they are selling first and asking questions later.

Many investors look for signs of capitulation selling as a great entry point into a particular stock or the markets in general.

Panic selling usually results in great deals being exposed as stocks are oversold.

For instance - Google may trade lower 100 points in just a single session due to panic gripping the markets. Investors are selling ALL of their holdings, and are just desperate to get out of the markets.

This may result in some really strong companies being sold off, which will in turn create some really great deals.

Example: Post 9/11.

Investors were extremely jittery in the aftermath of 9/11, and wanted out of the markets at any cost. They sold anything and everything and didn't think twice about it.

Many quality stocks were beaten down due to the incredible amount of capitulation selling that was taking place in the aftermath of the terrorist attacks.

Investors simply gave up on the market and wanted out at any cost. This is a prime example of capitulation or panic selling.



Davemanuel.com Articles That Mention Capitulation:

None


Click Here For Hundreds More Definitions




Most Recent Articles
USA Deficit approaching 18 Trillion Dollars
Posted on: 2014-10-20 04:40:00
US Debt Load Approaching $18 Trillion
Netflix company logo - On white background
Posted on: 2014-10-15 21:36:00
Netflix Set To Lose Billions in Market Cap Following Q3 Earnings Report Release
Mitt Romney - 2012 Photo - Clear Blue Sky
Posted on: 2014-10-13 19:48:00
Iowa Poll: Romney Only Republican Who Would Beat Hillary Clinton
Dow Jones Industrial - Chart - Year 2014 up to October 9th
Posted on: 2014-10-10 20:53:00
Dow Jones Turns Negative For 2014 After Volatile Week
NBA - National Basketball Association - Logo
Posted on: 2014-10-08 23:05:00
NBA, Players Looking At Likely CBA Standoff Thanks To New TV Deal, Team Valuations





Twitter

421
Twitter $$


SPECIAL FEATURES

Debt Ceiling Changes (1940-Present)

United States Debt Clock

Where Did The DJIA/NASDAQ/S&P 500 Trade On..

Historical GDP Numbers for the United States

Historical Spending Increases

US Government Spending Breakdown 1962-2015

History of Deficits and Surpluses in the U.S.

History of Debt In The United States

Largest Foreign Holders of US Debt

Historical Gold Prices

Inflation Calculator

What Did It Cost?

Hedge Fund Filings

Historical Unemployment Rates in the United States

Historical State Unemployment Rates

Canada Debt Clock

A History of Bank Failures in the United States

Dow Jones Historical Data

Nasdaq Historical Data

S&P 500 Historical Data

Median Household Income History

House of Representatives History

Compound Interest Calculator

List of Failed US Banks 2014

Historical Unemployment Rates in Canada

UK Debt Clock

Intragovernmental Holdings

Historical Fed Funds Rate

Historical Bitcoin Prices

Financial Twitter Alerts




BLOG POSTINGS

Las Vegas: Democrats Currently The Favorites To Win in 2016

Los Angeles Clippers Likely To Fetch $1 Billion+ in Sale

Mark Cuban Not Sweating His Lack of Involvement in Box IPO

Vince McMahon a Billionaire Once Again

Parsing Obama's 2014 State of the Union Address

NHL Franchise Values Continue To Soar

Twitter To Trade Under TWTR Symbol

Shares of Tesla Drop on Downgrade, Car Fire

More Problems Arise For JC Penney

AMC Networks Basks In Glow of "Breaking Bad" Finale



INTERNATIONAL

Etoro Rezension

Os Dois Principais Corretores de Forex no Brasil

Meus Corretores Forex Brasileiros Favoritos



POLITICAL NET WORTH

Ted Cruz Net Worth

Marco Rubio Net Worth

Hillary Clinton Net Worth

John Boehner Net Worth

Paul Ryan Net Worth

Rick Santorum Net Worth

Newt Gingrich Net Worth

Mitt Romney Net Worth

Ron Paul Net Worth

Joe Biden Net Worth



OTHER NET WORTH

Lionel Messi Net Worth

Rand Paul Net Worth

Dr. Dre Net Worth

Wayne Rooney Net Worth

Johnny Manziel Net Worth

Stephanie McMahon Net Worth

Satya Nadella Net Worth

Paul Allen Net Worth

Adam Silver Net Worth

Peyton Manning Net Worth

Jay-Z Net Worth

Winklevoss Twins Net Worth

Chris Christie Net Worth

Adrian Peterson Net Worth



MOST RECENT DICTIONARY ENTRIES

Downtrend

Battlebus

Ballot Box

Market Timer

Annex

Cold Storage

Asset Allocation

Surge Pricing

Vault Cash

Hot Wallet




CREDIT CARDS AND OTHER SERVICES

The Top Three Online Stock Brokers In Canada

The Top Two Forex Brokers in Canada

PersonalLoans.com Review

Economist GMAT Tutor Review

MyHosting.com Promo Code

Media Temple Special Offer Code

Etoro - Tap Into The Power of the World's Largest Social Investment Network

Certified Hosting Promo Code

Yahoo! Web Hosting Coupon Code

Hostpapa Coupon Code

Hostgator Coupon Code

Fatcow Discount Coupon Code




ARTICLE ARCHIVES

Blog Posts

Company Reviews

Daytrading

General Knowledge

General Market News

Health + Fitness

Hedge Fund News

Internet Companies

Making Money Online

Motivational

Online Forex Trading

Real Estate News

Stock Market Education

Stock Market Scandals

The Economic Meltdown

Trader Profiles



DaveManuel.com - Copyright 2014, All Rights Reserved | Advertise | Privacy Policy | Disclaimer